Property Update

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We have received interest from our clients on the status of the current property market. We have requested Michael Salvartsis (a Sydney property buyers agent) who has assisted our clients secure property purchases, to provide his assessment.

Current Property Market Trends in NSW and VIC - August 20

According to Corelogic (August 2020), housing markets have remained relatively resilient through the Covid 19 period so far.

“The impact from Covid-19 on housing values has been orderly to date, with Corelogic’s national index falling only 1.6% since the record high in April '20 and housing turnover has recovered quickly after its sharp fall in late March and April”

Real estate agent activity has recovered according to Corelogic to the same level as a year ago. The number of newly advertised properties is up 46% from recent lows of early May 2020. There has also been an increased number of "off market” and "pre-auction” sales transactions.

Regional markets (particularly lifestyle markets in NSW such as the Southern Highlands, the South Coast and Byron Bay / Ballina) are experiencing a noticeable increase in buyer demand, from those leaving larger cities due to Covid 19. The stay home, isolate and work remotely factors arising from Covid 19 are causing buyers to make lifestyle changes more permanent, by moving out of the larger cities.

First Home buyer activity has become more prominent in light of the increased incentives now offered by both the Federal and State Governments.

According to SQM Research - July 20 - Sydney recorded a decrease in residential vacancy rate from 3.8% (June 20) to 3.6% (July 20). Melbourne recorded a small increase in the residential vacancy rate from 3% (June 20) to 3.1% (July 20).

Some inner city areas of Melbourne (e.g, Carlton, Southbank, Melbourne City) and Sydney (e.g, Bondi Junction, Kingsford, Sydney City) have seen rental listings more than double since March 20 due to the combined effect of temporary migrants departing, overseas arrivals, including foreign students stalling and the transitioning of short term accommodation (namely Airbnb, to permanent rentals increasing the supply of rental stock).

Investor purchasers who have been sitting on the sidelines or who put their briefs on hold in March 2020...are now prepared to re-enter the market albeit in select suburbs where vacancy rates are reasonably low.

There has been a notable increased enquiry from investors looking to secure multi-residential investments including single titled duplex's, dual occupancies, granny flat sites and residential flat buildings.

If you would like to discuss your next investment property purchase please contact Michael on the details below.

MICHAEL SALVARTSIS

DIRECTOR
M +61 402 897 083
Tower 2, Level 21
201 Sussex Street
Sydney NSW 2000

michael@realpropertybuyers.com.au
www.realpropertybuyers.com.au

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