Welcome to the new look edition of Market Insights, providing expert analysis of property markets across the country.
Diversity in growth across the national property market is a win for buyers over the first quarter of 2017.
Much has been made of the latest CoreLogic data showing a 12.9% increase in national dwelling values over the past year, spearheaded by significant growth in Melbourne and Sydney. Most of the commentary in response to this data has focused on the fact that values have not risen this quickly since 2010, which, if you choose to believe, presents challenges to buyers.
However this is not the case. This perspective only tells part of the story. The national market actually has more opportunities than buyers may realize.
The advantage buyers have at the moment is a variety in growth rate and price points across the capital cities. YoY growth has been exceptionally strong in Melbourne (15.9%) and Sydney (18.9%), but has been far steadier, but no less consistent in Brisbane (3.7%) and Adelaide (3.4%).
Property in the two largest markets offers buyers the likelihood of strong growth in the near term, if they purchase quality property in the right locations. For other prospective purchasers smaller markets such as Brisbane and Adelaide are likely better options with lower price points and growth that is easier to keep pace with. These cities also have the benefit of the best rental yields of the five largest cities. Both investor and owner occupier buyers continue to look to these markets as a result.
What is clear is that buyers shouldn’t wait for the market to present an opportunity. There is a belief in the market that values will dip or substantially drop off, which will allow buyers to purchase at a lower price. However this is highly unlikely to happen. Growth shows little signs of abating, particularly with stock levels being down by 4% in capital cities on levels at the same time last year and continuing strong demand.
Buyers also need to remember that quality property in sought after locations will be far less susceptible to a correction. Good property will always attract significant demand. The key lesson is to not wait.
Melbourne has experienced particularly strong growth over the first quarter of 2017. Lower stock levels in the housing section of the market has seen strong competition within 20kms of the CBD at auction day which has contributed to continued growth.
We have observed an increase in off market opportunities in the last month or so, as well as an increase in private sales as a preference for vendors going to auction.
One of the biggest pieces of news to influence the Melbourne market was the announcement that the state government would scrap stamp duty for first home buyers for purchases under $600,000. Although this won’t take effect until the 1st of July, we believe that first home buyers will likely hold off purchasing over the next quarter.
When they do return to the market they will have a significant influence on property in the $450,000 to $550,000 bracket. Competition in this range will be very strong and prices could inflate. However, buyers need to consider whether it will be worth holding back until then. The market will likely keep moving upward and values could overtake whatever savings they hope to make from the stamp duty removal.
At the higher end of the market, we have seen an easing in competition around the $1.25 million to $1.75 million bracket, but there are still instances where properties will come under intense competition.
We saw this recently when an unrenovated three bedroom period home in Footscray went for $283,000 above reserve. We anticipated strong competition, but as the house wasn’t even livable, we were surprised by the result. Conversely, a three bedroom townhouse in a superb location in Northcote that we believed would attract a number of buyers passed in to us due to little interest. That won’t be the case with every sale, but there has been a noticeable easement as buyers currently assess their options to move or renovate and remain where they are.
Located 26km north of the Melbourne CBD, certain pockets of Epping are quickly showing good value for investment and owner occupier buyers.
With access to two train stations, buyers will find areas well serviced by Epping plaza shopping centre, shopping strips, the Northern Hospital, and a selection of schools. Median prices in the suburb have grown approximately 20% in the last 15 months or so to $495,500, as buyers follow growth along train line.
One of the biggest drivers of growth in the area will be the construction of the Mernda rail extension, which is scheduled to be completed by 2019. A further three stations along eight kilometres of track will continue on from South Morang station (on the eastern border of Epping), and make its way along Plenty Road up to Mernda. More people will be drawn to this area once they have increased rail access and as a result, we expect growth in Epping to be stimulated as people look for property as close to the city as possible.
The suburb is also attractive to buyers due to newer housing stock available as well as the plentiful opportunities to renovate or redevelop. These development opportunities are attracting younger couples or young families wanting to create there dream home and investors looking for developments. We anticipate the next year or so to be a good opportunity for buyers to secure property in the suburb.
Fawkner is continuing to show strong growth as buyers look for good value property in the north. The suburb offers one of the best opportunities within the middle ring out of the CBD, being only 12kms from the city centre.
Buyers are looking at the area as they find better value than neighbouring areas such as Coburg, Pascoe Vale and Reservoir, where median prices can range from the mid $700,000’s up to $1million.
Fawkner has a more affordable median price of approximately $650,000, however prices are likely to quickly move beyond this point. Strong growth has seen home values move up 14% in the last twelve months, from $570,000 to $650,000. Every indication is pointing to this growth continuing and if buyers want to find affordable options they need to look at Fawkner quickly.
Most of the stock available in the suburb is older housing on good sized blocks which is fine to live in as is, but offers excellent opportunities to add value later on. Developers are also beginning to move into the area as they too are finding more value for large allotments. In turn, this would likely bring younger buyers or renters wanting more low maintenance property.
We expect growth to not only continue as a result of this buyer movement, but also because suburbs further north such as Cambellfield are more industrial with fewer residential options.
by Antony Bucello
The Brisbane market is not slowing down. Units within the inner ring of the CBD are struggling to maintain value let alone appreciate, but the housing market is powering on.
Lower stock levels in the most sought after areas within 10kms of the CBD are seeing glass ceilings broken. We have encountered a number of properties being sold before they get onto market and when they do, many buyers underestimate the intensity of the market and miss out. For example, a property we appraised in Chelmer (7kms south of the CBD) for $850,000 – $900,000 sold at auction for $1million.
Another factor is the investors from Sydney or Australian expats from overseas. Whereas six months ago owner occupiers would be spending more than investors, the reverse is now the case. Equity rich investors from Sydney are finding excellent value in Brisbane and are bringing budgets of $750,000 plus.
We have also seen strong activity in suburbs 20-30kms from the CBD where some suburbs have shown a dramatic spike in sales prices this quarter, albeit in lower price brackets. But this won’t be for long. Owner occupiers are finding competition for lower priced property is pushing up value.
Despite this competition it is still a factor that buyers are sometimes not prepared with financial approvals in place and ready to move forward on a cash basis. They are struggling to secure property over the ‘war ready’ hardened, serious buyers and as such need to engage the services of a property expert to have the best chance to secure property.
Margate, 26kms North East of the CBD on the Redcliffe peninsula, is a coastal strip which features one of the biggest attractions for buyers in Brisbane: the only metropolitan area with access to seven kilometres of sand beaches. Thanks to rapid transformations occurring in the Morton Bay area, buyers will be looking to suburbs like Margate to enjoy the beachside lifestyle.
Increasing investment in infrastructure is boosting the area to become one of Queensland’s fastest growing economies. The construction of the Redcliffe rail extension running into nearby Kippa Ring allows resident’s rail access into the CBD, while the widening of the Gateway Motorway will allow a better commute into the city.
The combination of investment in infrastructure and population growth is also transforming the region’s visitor economy in anticipation for the area to become a tourism destination. The facilitation of commercial opportunities by the Morton Bay City Council along the foreshore areas will help to encourage local business growth, strengthen the tourism economy and enhance the lifestyle of residents living on the Redcliffe Peninsula and greater Moreton Bay Region. This is evident at the moment with some high rise complexes popping up, which will likely increase in the coming years.
At present, housing stock is the best option for investors to look at. Margate is still an affordable pocket of the peninsula and as a result is a hot spot for investors who are looking for short term gain as well as stability and sustainable growth. Growing interest in the suburb is evident from the 19% growth in median house prices over the previous three years, up to $417,000.
Considered the gem of the Redlands this suburb is a rising star of the coastal areas of Brisbane. The suburb is well established with wide leafy tree lined streets, excellent access to all major roads and close proximity to shops and large town centres of Cleveland and Capalaba.
Ormiston is also very tightly held. Families who are looking to settle into a quality area are attracted to Ormiston due to the larger blocks of 600 to 800 square metres and selection of quality primary and secondary schools, including the nationally renowned Ormiston College. There is also a large contingency of older residence who have lived in the suburb for long periods. As a result, property in the suburb is closely held and highly sought after. For investor buyers the suburb is exceptionally attractive in that regard, with strong opportunities to secure long term tenants complementing capital growth.
Although Ormiston is well established and desired by buyers, the suburb still offers good affordability for buyers to get into the area. Rapid growth over the last few years has seen an increase of median house prices rise 13.3% to $595,000. Comparable property in the southern cities of Sydney and Melbourne would far exceed this price point, so for interstate buyers Ormiston is absolutely a suburb to watch.
by Stephen McGee
The South Australian market has been on fire over the last quarter. The main driver for the strong activity Adelaide has experienced this quarter is the lower than usual levels of stock.
In the last quarter of 2016 a longer than usual winter contributed to vendors holding back from taking their property to market. There was an expectation that levels would increase over the summer however this wasn’t the case as this attitude continued into the first quarter of 2017. As a result competition has been strong and prices are showing good growth.
Buyers are becoming increasingly frustrated as less options are available and they are offering above asking prices in some situations to secure their desired property. In this instance it’s important they seek expert advice to understand the most cost effective way of securing property.
However, Adelaide still offers the most affordable median price point of all of the mainland capitals. As a result buyers are finding Adelaide a superb alternative to Sydney and Melbourne. Many owner occupiers are coming here due to the excellent quality of living, while investors from the eastern markets are finding more bang for their buck.
Sydneysiders in particular are seeing excellent value in the SA capital. Investors with budgets between $500,000 and $600,000 are common and they can secure quality investment options close to the CBD.
Recent examples of quality investments in only the last month have been properties in Lockleys and Dover Gardens.
A three bedroom property on 815sqm with a 19m street frontage in Lockleys was sold for $720,000. Ideally positioned just seven kilometres to the CBD and just five kilometres to some of the best beaches in the city, as well as being close to a number of schools and parks, the property caters to a number of buying types and is an excellent investment opportunity.
Likewise for a three bedroom home in Dover Gardens. Set on 800sqm, the property is only a couple of kilometres to the beach, schools and Brighton train station, while it’s only a 20 minute drive to the CBD via nearby Marion Road. Currently under zoning to allow for redevelopment of two dwellings and generating a rental yield of 3.6%, the purchase price of $491,000 represents excellent value for buyers coming from the east. We expect this to not only continue, but for competition to increase.
The beach side suburb of Semaphore 16kms North West of the Adelaide CBD has seen plenty of activity over the start of the year with people seeking quality lifestyle options.
Semaphore has a quality beachside lifestyle that buyers relish, but is perfectly positioned for easy access to the city for work – most residents would be in the surf within an hour of knock off! The biggest draw card for the area is the easy access to the beach, trendy Semaphore Road with eateries and quirky shopping and proximity to the CBD. The suburb is also perfectly serviced by the train line, arterial roads such as the Port River Expressway and Port Road for access into and around the city, shopping and schools.
Families will find plenty of good options in Semaphore due to the quality infrastructure and lifestyle. Growth has been strong as a result as median housing values have moved 8.72% to $592,500 within the last twelve months. More and more people are seeing Adelaide as a quality place to live, with a level of livability rivaling that of the eastern states. Suburbs like Semaphore that are well developed and close to the sought after beach side lifestyle will be high on the list of buyers.
Largs Bay, just north of Semaphore is a suburb to watch carefully in the coming months.
The suburb is more affordable with a median house price of $487,000 and like Semaphore, Largs Bay enjoys easy access to some of the best beaches in the Metropolitan area and the train line allows for easy access into the CBD. It is likely to benefit from the submarine construction as people move into the area for work.
However, the suburb is likely to attract significant interest with the redevelopment of the Fort Largs Police Academy site.
The 7.4 hectare site occupies a superb location facing the beach and will be redeveloped to accommodate 250 new homes, with key amenities and features unique to Largs Bay to be maintained and incorporated into the site. The heritage listed Fort Largs will be transformed into a residential and public space with the Drill Hall to become a community space and the former barracks to be converted to apartments.
Utilising these existing assets will create a unique selling point for the suburb which will attract buyers to the area. With the new development, coupled with the enviable beach side location and lifestyle, affordability compared to nearby areas and the Submarine construction, Largs Bay will demand the attention of savvy buyers.
by Adam Stone
The Sydney market has seen impressive gains in the first quarter of 2017 with strong growth continuing.
Speculation of a property bubble burst that has cropped up in the last month or so is questionable. If Sydney property prices start to slow (sudden interest rate increases would be the most likely culprit) it will be more than likely a mild correction, not a downhill slide.
We are continuing to see a lack of property stock driving higher prices. Many vendors who want to sell their properties are holding off from doing so because availability of stock in Sydney is low and they are fearful they will not be able to find a new home in time for their own settlement day. In turn, competition for available listings is strong due to low stock levels which is continuing to fuel higher prices. An increase in interest rates may mean a continued lack of available stock and the competition in certain areas will remain strong.
Infrastructure projects such as the WestConnex, NorthConnex and the Norwest train line are all under construction and will cater for Sydney’s population growth, which recently released ABS figures confirmed hit five million in June 2016.
We have seen and will continue to see increased market activity in close proximity to these projects. There are some great opportunities for investors and first home buyers to purchase property along the Norwest Rail Line which is due for completion in 2019. The train line is already drawing buyers to suburbs such as Baulkham Hills, Castle Hill and Kellyville where property can be purchased within walking distance to the station and major shopping hubs. Investors with budgets up to $850,000 are able to buy good quality two bedroom, two bathroom units with parking. The huge commuter car parks and bus interchanges at each station will make commuting more convenient and are a huge drawcard for these areas.
The Northern Beaches also continues to offer strong growth and good return on investment. The revamp of the Dee Why town centre and Warringah Mall as well as the release of newly built apartments in low rise blocks has made this area an attractive prospect for home owners and investors alike. Beach side living with access to amenities and CBD express buses will continue to drive prices on the Northern Beaches.
With the median sitting around $1.46m – $1.48m these leafy suburbs offer great opportunities for buyers looking to secure a solid family home that has been renovated or needs renovation. Set 18kms north of the Sydney CBD, the streetscapes of Belrose and Frenchs Forest are seeing a significant transformation with an increase in knock down rebuilds by buyers who are looking to establish their dream property.
The suburbs are already well serviced by established infrastructure which is attracting family buyers, but the area has benefitted further from a raft of recent upgrades and new amenities. These include the Glenrose Shopping Village opening, a revamped library precinct and the imminent arrival of the 4 Pines Brewery in Belrose. There has also been upgraded infrastructure for the Northern Beaches Hospital, which accompany the easy 10 minute drive to the beach and access to the CBD.
The area also offers a number of schools, in addition to natural attractions. Belrose backs onto the Garigal National Park and the suburbs are only a 10 minute drive to Sydney’s northern beaches.
As a result of the continuing redevelopment of property in the area coupled with the amenities and infrastructure already in place, expect to see owner occupier activity move prices upward and continue to grow when development is complete.
The construction of the Norwest rail line running from the CBD extending to Rouse Hill 42kms North West of the city is drawing more activity close to new stations along the upgraded rail line. Castle Hill, 30kms North West of the CBD, will be one such area, benefiting from the new Castle Hill station that will run through the middle of the suburb.
The new train station will complement the established Castle Towers shopping district and combined will become an exceptionally attractive area for investors and first home buyers looking for property close to key amenities.
Buyers with budgets of up to the mid $800,000’s to low $900,000’s will find good quality two bedroom, two bathroom units with parking. However they will need to ensure they buy within walking distance to the train station and shopping district to see maximum growth. As a result property that sits within a couple of kilometres around this area will likely be in high demand.
The suburb has a strong unit rental yield of 3.49% and median unit prices have seen steady growth of 4.38% in the last year for a median price of $835,000. We expect this to increase in the coming year as buyers move in before competition really starts to intensify.
by Simone Luxford
Lewis Street, Brighton, SOUTH AUSTRALIA
Client type and budget:
Investor client with a $600,000 budget. Full Premium Service – Search, Assess and Negotiate
A spacious property on a massive 864sqm block in a prime location. An ideal redevelopment opportunity minutes to schools, Westfield’s Marion, parks and less than two kilometres to the beach and Brighton train station and 15kms to the CBD.
The client’s primary aim was to purchase a property located in an inner city or metro area that had strong re-development potential. The client was a surgeon at an Adelaide hospital and had little time to research the planning requirements for property development, let alone spend the time searching or buying a property and therefore needed expert advice.
The client engaged National Property Buyers on a Premium Service to secure their property. South Australian State Manager Adam Stone undertook a comprehensive search, assessment and negotiation process to secure the best property to fit the client’s specific criteria.
Brighton was identified early on in the search phase as a suitable suburb to review. Well serviced by lifestyle amenities, the area had also experienced strong capital growth in recent times and showed signs of strong growth potential in the future.
When this property came to the market, it was immediately apparent it would suit the clients brief perfectly. Situated on a large well-proportioned block with a 23m frontage the property had an opportunity to develop with a pair of two detached dwellings. In addition, there were numerous lifestyle amenities nearby, many within walking distance which included Brighton station, the beach, schools and Westfield’s Marion shopping centre.
The Selling Agent was not accepting offers prior to auction and unsurprisingly the property attracted a large crowd at auction day.
Competition to secure the property was strong and there were a number of bidders pursuing the property. Adam’s confident bidding saw off the other bidders and put the client in the ideal position to secure the property.
However, bidding quickly reached the clients upper limit. Adam knew that the property would be perfect for the client, so with their blessing, Adam pushed a bit harder to secure the property. Taking into account the strong capital growth in the area and the value add opportunities to redevelop, Adam believed that pushing a bit harder would be beneficial in the long run.
Adam’s decision was vindicated and the property was successfully purchased for $607,000. Although this was slightly over the client’s initial budget, the property was perfect for the clients brief and was worth pursuing. According to CoreLogic data, median house prices in the suburb have moved up 4% in the three months following the purchase, further confirmation that the decision to pursue the property was the right one.
Wellington Street, Virginia, QUEENSLAND
Previous NPB client looking to sell their mother’s property through NPB’s Vendor Advocacy service
A 1950’s three bedroom home in original condition on 1,214m2 over two allotments.
The client’s wanted to sell the property with as little stress as possible and did not want to deal directly with a Selling Agent.
Previous clients of National Property Buyers’ Buyer Agent service needed to sell their mother’s property with as little stress as possible, due to a strong sentimental connection with the home. To do this they engaged QLD State Manager Steve McGee to handle the campaign as Vendor Advocate.
Steve assessed the property and found that the home was set over two, 607m2 allotments. However with Steve’s experience in this field he also knew that the property could be reconfigured into three, approximately 405m2 allotments, although council approval would be required. Regardless, the site presented excellent opportunities for numerous buyer types.
In addition, Steve advised the vendors that the best course of action would be to engage a Selling Agent who knows the area intimately and would have a strong database of buyers who would be looking for this type of property, as well as a working knowledge of small developments such as this.
Following the client’s mother moving into her new residence the property was ready to launch to market. With the vendor’s approval Steve contacted two reputable Selling Agents who knew the local area exceptionally well and were able to tap into a strong buying pool.
As both of the agents informed Steve that they had a potential buyer, Steve advised the vendors to engage both Selling Agents on an ‘open listing’ (meaning either can sell the property). However, Steve advised the clients to do so only if the Selling Agent’s promoted the property to their existing database and were not to be marketed publicly. Further, the agents would have only two weeks to field the best offers before the vendors signed an exclusive authority with only one agent.
With all in agreeance and the engagements signed, the Selling Agents contacted their buyer databases. They soon returned to Steve with offers ranging from $700,000 to $750,000. Steve knew the massive potential of the property and advised the agents that their buyers would need at least $800,000 to secure the property.
The agents then came back with revised offers, one which was especially favourable with a 14 day due diligence period and a three month settlement.
The property was sold for a superb result of $816,000. Better still, through Steve’s advice to access the Selling Agent’s existing database the vendors saved more money by not having to spend anything on marketing and advertising, and they avoided the stress of numerous inspections.
Grevillia Road, Oak Park, VICTORIA
Client type and budget:
An investor client with a budget of $800,000. Full service – Search, Assess and Negotiate
A brand new three bedroom townhouse in a boutique block of three
A time poor client in the financial services industry was looking to secure an investment property within the inner or middle ring of suburbs outside the CBD. The investor wanted to find something flexible that could be suit a family or young professionals and that was close to transport, roads into the CBD and close to schools.
The inner northern was immediately identified as a good starting point to find a property that suited the clients brief.
Senior Buyer’s Agent Brenton Potter knew the North West area of the city intimately having grown up and lived there. Suburbs like Oak Park, Fawkner and Pascoe Vale have shown excellent growth in recent years and were selected as such.
The property at Grevillia Road was quickly identified as suiting the clients brief perfectly: A brand new three bedroom townhouse close to the Snell Grove shopping village, parks and minutes to the Northern Golf Club were key attractions. Best of all the property was only 750 metres to the Oak Park station and had easy access to Pascoe Vale Road into the CBD. All boxes were ticked.
Available through private sale, a considered analysis and assessment was needed to formulate an accurate offer that satisfied the Vendors without over paying.
Brenton conducted a thorough analysis of the property and submitted an offer, which was far more satisfactory to the Vendors than the competition without exceeding the $729,000 asking price.
The Vendors accepted Brenton’s offer and the property was purchased for $725,000 – $4,000 under the asking price and $75,000 under the client’s budget.
A rental assessment has been conducted by NPB Property Management and the property is anticipated to attract up to $450 per week, which would equate to a 3.23% yield to the owner.
Eveline Street, Margate, QUEENSLAND
Client type and budget:
An investor client with a budget of $1,400,000. Full Service – Search, Assess and Negotiate
Three standalone adjoining blocks in the emerging Redcliffe Peninsula. All a walk to water, schools, shops and cafes.
The client had a very specific brief to meet. With a budget of up to $1.4 million, they wanted to purchase a high end property in a high growth area, or make two purchases. If the client had the opportunity to make two purchases, the properties had to be in good condition with the ability to add value while also being tenant ready.
NPB advocates sourced this property through their off market networks. At 1,365qm, the three combined allotments were a rare offering and would attract intense competition once on the market as a potential development site.
NPB advocates were the first agents through the property and recognized the excellent opportunity presented. An offer was quickly submitted before the property went onto the market.
An offer was submitted to the vendors which triggered negotiations. Thanks to NPB advocates expertise in this space, the three properties were purchased for $1,022,000. This was an excellent result for the buyer as it was almost $380,000 under their budget and $103,000 under the asking price.
To find out how National Property Buyers can assist you achieve an outstanding result with your property transaction, contact the relevant state manager here
The rental market in Melbourne saw a very strong opening quarter to 2017. The January/February period is often the busiest in the calendar year for rentals as tenants move into new properties to start new jobs or study and this was reflected in the activity NPB Property Management saw this year.
Competition was exceptionally strong for NPB property and most properties were leased within a couple of weeks of coming onto the market, with most securing tenants within 1 to 2 inspections. Tenants were also consistently offering above the asking price in order to strengthen their position when negotiating their application.
Furthermore, tenants were also offering more than the required one month to six week bond up front. In some cases, it was not uncommon for prospective tenants to offer three to six month’s rent upfront, such was the level of activity on the market.
NPB Property Management found that areas in the inner west and inner north were particularly popular, especially with young professionals who want to be close to the CBD in areas that offer some slightly more affordable options.
We had a two bedroom apartment in Ascot Vale that had in excess of 50 people in attendance at the only inspection and a two bedroom Villa in Fawkner which attracted 40. Both properties were leased to young professionals who wanted to be close to transport into the CBD.
Vacancy rates for NPB property achieved a superb 1.1%, compared to the overall rental market at 2.4% as per REIV data.
by Ivonne Di Perna
NPB Property Management QLD experienced the high volume of tenant enquiries and quickly secured tenants early in the quarter as anticipated. Most properties experienced limited vacancy times for owners as property were let on the first inspection within the existing tenants notice period. As a result of NPB Property Management QLD’s diligence in securing tenants for this period, the office achieved an outstanding vacancy rate of 1.5% at the end of the quarter.
Houses outperformed units in demand and applications received and were not restricted to a particular area.
We secured a number of successful lettings that proved the benefit of working closely with a Buyer’s Agent, in particular houses in Scarborough and Birkdale. We secured tenants for both of these properties after only the first inspection and also achieved rental increases.
As these properties were purchased by our Buyer’s Agent service, we were able to negotiate for the vendor to rent back for a short period before taking them to the rental market. This allowed our clients to receive rental income immediately upon settlement, and gave the PM department time to advertise for a new tenant.
Units were rented to either students or professionals wanting easy access to study or work, while houses were sought by families where schooling was a huge requirement.
The second half of the quarter eased slightly in terms of number of enquiries, however this is as expected with the rental cycle. Historically this should pick up again in the next quarter.
by Tracey Farrell
The Adelaide rental market was exceptionally strong over the first quarter of 2017. Ordinarily activity is the most intense over January and February and normally quietens down by mid-March. However that has not been the case this year. The market is continuing at a rapid pace and shows no signs of slowing down.
Many of the applicants on the market at the moment are families or young couples and a number of those seem to be relocating from interstate for work. As a result larger houses with three or four bedrooms are attracting plenty of attention. This is especially true of properties located close to the beach or the CBD that are close to good schools.
One example was a property we had in Morphetville. The property was within a 15 minute drive to the beach with a choice of good schools nearby, so it was no surprise we had over 25 groups through on the first open and let for over the asking price.
There seem to be plenty of prospective tenants still out and about looking for their new home and this is benefiting our landlords a great deal with opportunities for increased rents and very low vacancy periods between tenants. In fact, most of our landlords have had no vacancy period if their property has been available for lease between the outgoing and ingoing tenants, much to their delight.
Finally, landlords are beginning to see some increases in rent roll out across the board, especially in sought after beach side and inner metro suburbs