We are bombarded with so many different headlines at the moment. Here are a few of my opinions from the previous cycles and what we saw that will influence the property market space.
Here is my take on:
- Construction Boom – no doubt the Federal and State Governments will be pushing hard for a large amount of construction projects to be fast-tracked and started. This will get all the major trades employers moving again and create a scarcity of the smaller operators and subcontractors. This will affect cost and build timeframes.
- Interest rates – I don’t think anyone is seeing interest rates moving upwards anytime soon. Currently fixed rates are at their lowest ever (low 2%’s), this is a great opportunity for those investors that have either maxed out their capacity for the time being to reduce their outgoings for the medium term, or those with a big enough portfolio to put a couple on fixed and leave others variable to leave their equity accessible. The old rule applies though, any changes to living arrangements, or restructuring portfolios, exiting a fixed rate will still cost you, it is not a one size fits all.
- International migration – will be subdued for a few months while restrictions are in force but will come back with a bang as soon as they are lifted. Our track record of keeping Corona at bay will add to the desirability
- Internal migration – as more work from home roles are likely to last, this will create a “lifestyle move” for many. They will go coastal, tree change, warmer climates etc to make the most of the extra freedom offered by employers.
- Commercial office space – will be in for a disruptive time. Employers will be offering part time / full time work from home opportunities and not needing the large spaces, minimising upsizing moves etc.
- Rental market will be squeezed – plenty of buyers have had to shift their timelines back due to tighter lending criteria / change in income or mindset etc.
- Our areas have survived well – Our National Acquisitions Director spent some time talking to our rental managers and other contacts in that industry and found that very few of or our house and land and middle ring suburbs have been affected in even a small way. The worst hit suburbs are inner city / Airbnb / Serviced apartment short stay type locations as all agreements were torn up and the accommodation entered the longer term let market. Saturated markets never perform well! The other ones hit are the Pimpama, Yarrabilba, Redbank Plains etc where the renters outnumber the Owner Occupiers. The consensus is that this comes down to weight of numbers as much as anything, but also a lot more hospitality and retail workers with casual employment etc.
We can still access a lot of incentives for buyers wanting to do something now, it is a great time to get into the market now the tide has turned.
Any questions or to discuss these, please contact us.Back to News Page