The Belle Property [suburb] team has barely had time to celebrate the new year with an incredibly strong start to the year with sales inquiries pouring in and big crowds at auctions and inspections. Our principal [name] says this great beginning is based on a few basic real estate fundamentals.
Firstly, the cost of money and the significance of time has changed dramatically. For the fourth month in a row, the Reserve Bank of Australia’s lowest ever cash rate of 0.1% has remained unchanged and is expected to remain so in the long term.
“Low interest rates are giving buyers confidence that rates will be low for some time,” Principal says. “The only potential I see for interest rates to go up in the next few years is if there is significant inflationary pressure. This may happen but we live in a much more global economy than we did 20-30 years ago. The cost of money worldwide is so cheap that it’s very hard to isolate yourself in this global economy by having interest rates too high.”
This increased buyer confidence has in turn led to soaring sales with few good quality homes now available on the market with a greater number of people looking to buy a home then there are homes to buy.
“When a buyer finds a property that ticks all the boxes, they’re happy to go all in for fear of not being able to find a property which meets their requirements for months to come,” he says.
BEACHSIDE SUBURBS POPULARITY CONTINUES TO GROW
For aspirational lifestyle properties, close to the coast and just 20 minutes from the CBD, head to the coast.
Our principal [name] explains how he recently sold a stunning five-bedroom home 2 minutes from the beach for between $7.5 million-$8 million in an off-market purchase. Built just three to four years ago and stretching across four levels and offering panoramic views to of the ocean, he says the property sold to a young family looking to enjoy the lifestyle that the property and the area offer.
“We’re finding this area is a very strong marketplace for aspirational lifestyle properties,” the principal says. “COVID has reshaped how some people want to live and the coastal market is very strong in our city and up and down the coast. And even though people are working from home, people still see a future where they want to engage with where they work, rather than working from home forever.”
[Data company] figures reveal the median house price is $2,737,500 with the demographic including a mix of families, couples and single seniors. Houses rent for $1,305 per week and apartments for $590 per week indicating this suburb is still great for capital growth and returns on investment.