Welcome to the Spring property market!
Traditionally the busiest time of the year for real estate nationwide. Typically, sales and listing volumes both rise from September to November, and while buyer demand and property supply increase over the season, the impact on prices is usually marginal.
As we enter September 2021, however, a large portion of the country remains in lockdown. Demand remains high, but stock volumes are low.
Data from Core Logic shows increasing median prices in most capital cities, quick sales and continuing real estate records. As lockdowns lift, a robust recovery often follows, so what should we expect from this Spring season?
On the plus side, vendor activity is predicted to increase, bringing better listing volumes to market.
Mortgage rates remain low, household savings have grown, and international borders remain closed; these factors point to increased buyer activity.
However, tightening of credit conditions is being discussed, and affordability constraints, due to the burgeoning marketing, are now starting to impact.
If these result in a slowing of buyer activity and there is a lift in supply, we could see a rebalancing between sellers and buyers and a more equitable market as we head into 2022.
- It’s a sellers’ market in Sydney right now as low supply and high demand continue to impact prices. The median house price in Sydney is now $1,275,000, making Sydney the third least affordable city in the world.
- Loans to Sydney property buyers have increased by 249 per cent in the last twenty years, going from an average of $157,000 in 2001 to $500,000 in 2021. As regulators start to look closely at credit control, housing affordability in Sydney is well and truly in the spotlight.
- In August, the best performing Sydney suburbs were North Kellyville, Stanhope Gardens, Turramurra, Kings Langley, Gordon, Middleton Grange, Belfield, Picnic Point, Menai, and Gymea Bay.
- The NSW government has amended public health orders to allow investor inspections to continue during lockdown. Investors interested in regional property will require a permit to leave Sydney. Domain reports that downsizers determined to move now are now looking at apartment living in the inner city as a result.
- The Strata Schemes Management Act was updated in late August with amendments allowing pets to be kept in strata buildings. By-laws that “unreasonably prohibit” the keeping of an animal will now have “no force or effect”.
- The Melbourne property market is in hibernation, with in-person private tours and public auctions banned during lockdown. Frustrated buyers are now looking further afield at regional centres, while Melbournites, feed up with lockdown, are increasingly looking to Tasmania and South Australia for a fresh start.
- According to Domain, Elwood, St Albans, St Kilda and Newcomb boast the best homes for sale below the current median house price.
- Thinking of downsizing and want the best value for money? Consider these areas – Fitzroy, South Yarra, Richmond and Kew. For those wishing to go a little further afield Nagambie, Kyneton and Warrnambool.
- With lockdown impacting volume and auctions over the last few weeks in Melbourne, the prestige property market remains in high demand, with interest in suburbs in the inner south and inner east up by 20 per cent.
- Select Brisbane suburbs are booming at the moment as a shortage of stock and continued interest from interstate buyers push house prices sky-high. According to realestate.com.au, Gordon Park is the latest suburb to see a house go under the hammer for $2 mil plus, with several suburban records broken at auction over the last weekend in August.
- By contrast, less than 10 km from Brisbane’s CBD, houses are selling for under $500,000. Rocklea, Spring Hill and Wynnum are offering some of the best bargains in the city.
- The latest data from Core Logic highlights the suburbs in Perth, where it’s now cheaper to buy than rent. These include Brentwood, Medina, Parmelia, Leda and Orelia.
- Buyers looking for premium real estate should consider riverfront suburb Bitcon and City Beach; both suburbs continue to break records.
- The Real Estate Institute of Western Australia has launched an accreditation program for real estate agents to improve service standards within the industry.
- Since 12 August 2021, Covid restrictions in the ACT have meant that the local real estate industry has not been able to bring any new properties to market. However, as of 27 August, the local Government will allow building inspections, energy efficiency rating reports and photography/videography. Hannah Gill, President of the Real Estate Institute of ACT, has welcomed the measures, saying that it will “allow our industry to keep moving”, despite some tough restrictions remaining in place.
- According to Domain, the capital has hit a record-high median house price of $1,015,833, the steepest acceleration in three decades. Woden was the best performing suburb with the highest yearly growth, while Belconnen and Gungahlin remain the stand-out suburbs for affordability.
- The Adelaide market is heating up early this Spring, with realestate.com.au suggesting that buyers focus their property search on those suburbs with the most significant jump in listings over the last week. These include – Roseworthy, Athol Park, Old Reynella and Pennington. Kangarilla, Seaford Meadows and Gawler all recorded the largest drop in house listings.
- Magill, Enfield, Athelstone, Grange, Ingle Farm and Seaton are all of buyer’s hit-lists heading into the Spring season.
- Investor demand is rising in Adelaide. According to Domain, the city is now the only state capital, apart from Hobart, where rents have not fallen in any suburb over the last five years.
- According to Core Logic, enquiries from NSW buyers looking to purchase property in the top-end have increased by 20 per cent during the last month. The prolonged lockdown has been the catalyst for the interest of both buyers and investors alike.
- According to Domain, units are the best performers in the current market, with the average unit price increasing $5,000 per week, each week during the last quarter.
For the 2 page visual report, click here…