According to Real Estate Business, despite Covid and the “Delta dampener”, the Australian house market remains in very good shape.
Amid a new wave of lockdowns and restrictions on the housing sector, ANZ Research has noted that dwelling prices are continuing to surge, particularly across capital cities. With this momentum, prices are expected to continue rising through to 2022 and they have bumped their national housing price forecast for 2021 to 21.14% for Brisbane.
A couple of months ago, there were indications that we might have hit the peak, but listing number are still extraordinarily low and competition for property is quite truly, just astonishing.
We’re being optimistic in our appraisals and trying to adjust to the current market but we’re still selling most properties for 10-20% above a figure that we feel is bordering impossible.
Apart from New Zealand (that are also experiencing significant capital growth over much of the country), there’s very few places on Earth where property prices are skyrocketing as fast as Australia.
It certainly is logical that in a world where lockdowns are the new normal and many businesses and household incomes are suffering as a result, how on earth can property prices keep escalating at such a fast pace?
In the past couple of weeks, we’ve noticed a brand new trend emerge where home owners might have purchased only 12-18 months ago and are now looking to cash in and sell for a huge profit. There are simply so many buyers that are looking to purchase right now that it will take a huge supply to the market before these buyer numbers start to be absorbed at a rate that’s back to normal.
On the otherhand, there is virtually no international migration right now so surely, median property prices will have to stagnate at some point. It’s a very interesting situation and no-one really knows how it’s going to play out.
Another factor this is starting to impact sales in South-East Queensland, and the Redlands in particular, is hosting the 2032 Olympic Games. Being only 30 minutes from Brisbane, and with the proposed White Water Rafting Facility planned for Birkdale, property prices are set to continue to rise to heights not previously seen. It is certainly very rare to find a house listed for under $500,000 in the Redlands now a days.
When it comes to selling, we can’t stress enough the need to encourage competition between buyers to guarantee you are getting the best price possible for your property. In this market, you need to ensure you are not underselling your property to the first buyer that comes along – competition builds demand and demand increases price.
Remember, if you need any help or advice, we are just a phone call away.
All the best, Simon.