Spring is here and along with the new season’s sunshine typically comes a new wave of listings. But 2020 has been anything but typical. Here at Belle Property [suburb name], principal [insert name] says COVID-19 has changed our local market’s Spring outlook.
“Just like our recent weather, the property market has also been mixed with some hot and cold sales results,” Principal says. “COVID is definitely playing a role in our property market with entry level properties experiencing a slight drop in demand with a lot of first home buyers affected by their employment in industries like tourism, hospitality and aviation – think Qantas & Virgin Airlines. Investors have also stepped back as they witness the COVID-related drop in rental yields as demand from university students and international travellers has plummeted together with a lot of Airbnb properties moving to the longer-term rental markets. For those apartments lacking attractive features, they have experienced a small drop in their market value (5%). At the other end of the market, a shortage of premium quality top end homes has seen a surprisingly strong increase (10%) in their values. In short, beautifully presented properties, that tick all the boxes, are continuing to attract buyers and strong results, and less favourable properties have struggled to keep pace and have slightly dropped in value.”
Even during this Covid period the picturesque beach suburb of Suburb continues to be a star player. This beachside beauty can boast two of Belle Property Suburb’s top recent sales. A new three-bedroom penthouse at 1/200 Street Road sold for a record price of $4.55m while a three-bedroom apartment at 2/1 Road Street was snapped up at auction for $2.223 million.
For those interested in investing their cash in this suburb, median property prices in this high demand coastal suburb range from $1.18 million for apartments to $2,732,500 for a house, according to data from [data provider]. Investors are currently experiencing an annual rental yield of 2.9 per cent for apartments and 2.3% for houses with the average two bedroom apartment renting out for $650 per week while house on average are available for $1,200 per week.
In other good news for our neighbourhood, in the week ending August 30, it recorded its most active week since April according to [data provider]. Of 730 houses taken to auction, [capital city] enjoyed a clearance rate of 74%, a definite improvement on its 66.1% clearance rate just a week earlier, a sign of a shortage of homes for cashed up buyers.
This week the Reserve Bank has also maintained its record low cash rate of 0.25 per cent and the predictions into the next 6 months are for a steady low rate.