As the weather heats up, so too does the property market.
According to Anna Porter, property economist and Principal of Suburbanite the warmer weather is bringing a warmer property landscape.
Porter believes that the market is warming up for Spring with more properties being listed, good buyer enquiry for the lower price points and auctions being scheduled.
“The higher end price points are still a little soft and we’re not seeing much movement here, but if vendors are realistic they will get their properties sold,” she said.
“During the winter months, we saw the rental market soften, as there is a lot more supply on the market due to the surge in duplex and unit builds over the past few years,”
“This ‘investor grade’ stock is now hitting the market in volume and renters can certainly get themselves a spring bargain if they negotiate a little. We are seeing more and more incentives being offered to tenants than in years gone by, as landlords try to reduce vacancy on their properties.”
Porter says it’s a good time to be shopping for a rental as she’s seeing rent free periods, free iPads, water bills paid for 6 months and more rental incentives.
As for auctions, Porter suggests these are still not performing as well as they have in times gone by.
“This is not so much a reflection of the time of year, but more a reflection of the changing lending landscape. It’s harder for buyers to get finance so this keeps them wary of auctions,” she says.
Porter warns this isn’t likely to change a whole lot between now and the end of the year.
Sellers do however have renewed confidence in the market so Porter expects more stock to come on to the market.
“Vendors will need to remain realistic with their pricing or they could find it hard to sell. If they price right, they will attract a good amount of buyer interest,” she warns.
“Many sellers have been waiting for Spring to list their properties, so this is already starting to show through the listings.”
Porter also offers some property projections and tips suburbs in Adelaide, Brisbane, Canberra and Perth to experience the strongest price growth over the next three to five years compared to suburbs in once booming Sydney and Melbourne.
“The strong growth in Adelaide and Brisbane will come from strong job creation, infrastructure spend and high levels of buyer demand as well as the major public projects for Brisbane,” Porter says.
“There’s also renewed confidence and great employment opportunities in Perth, leading the way for long-term property opportunities.”
Porter’s key for anyone looking to get their head around a market is to look at vacancy rates, median price movements over the past 12 months and the median number of days on market alongside a whole lot of other statistics.
“In Brisbane, we like Wynnum in the East and Nundah in the Inner North,” says Porter.
“For Canberra, some of the areas we like are suburbs in and around Gungahlin. Firstly, you’ve got a lot of good services and amenities and secondly, you’ve got the new trams that pass through,”
“The little undiscovered areas 25 minutes south of the Adelaide CBD are also projected for growth. Suburbs around Morphett Vale, Woodcroft and even as far as Edwardstown are all affordable, have a good rental demand, good infrastructure and facilities and plenty of jobs.”