Property Market Insights
Quarter 1, 2019
Welcome to the Q1 Market Insights for 2019 from National Property Buyers, where our local agents provide expert analysis of property markets across the country.
Sections: National Market Overview | Victoria | Queensland | South Australia
National Property Market Overview
The property market has spent the last 12 months weathering the storm of what seems to be never-ending policy and regulation changes. Consumer confidence in property has taken a knock but there are definitely silver linings in the juggernaut of property price growth slowing down. Previous downturns have generally been driven by an economic contraction or higher interest rates. However, this downturn is linked to a significant tightening of credit conditions, foreign investment restrictions and the unease caused by the Royal Commission and the looming Federal Election.
Is it a storm in a tea-cup though?
CoreLogic reported that “Although the past few decades have been characterised by increasing property values, that doesn’t mean there haven’t been periods when property values have reversed; in fact that housing market is highly cyclical with upswings generally followed by a period of falling values. At a national level, since 1980 there have been eight separate housing market downturns” and each one has ended in a market recovery. CoreLogic continued, “Even though home values have been falling for almost a year and a half, nationally dwelling values remain 15.9% higher than they were five years ago highlighting that most homeowners remain in a strong equity position.” There are always opportunities in a downturn market for the savvy buyer. In previously quarterlies we have discussed the surge of First Home Buyer entering the market and owner-occupiers taking advantage of the market conditions to upgrade their homes. And as an investor you do not want to buy at the peak of the market but near the bottom. However, anyone that is required to sell unexpectedly in this market may be wearing the brunt of the downturn, especially if their property is less than “a-grade”. Robert Di Vita Senior Buyer Advocate at National Property Buyers stated “Good properties sell well in almost all market conditions, whether balanced, buyers or vendor market.” Di Vita continued “High rise apartments suffer the most in Melbourne (and other capital cities) when there are fewer buyers in the market.”
Corelogic Hedonic Index
On the 1st of April CoreLogic released its March Home Value Index results and it can appear a little damming at first glance. National dwelling values have been trending lower for seventeen months and have fallen by a cumulative 7.4% since peaking in October 2017.
Source: Corelogic Hedonic Index
Mr Lawless, Head of Research said, “While the pace of falls has slowed in March, the scope of the downturn has become more geographically widespread.” In fact, Mr Lawless confirmed that the 0.6% drop in March was actually the smallest of the month-on-month declines since values fell by 0.5% in October last year. We are proud to say we analysed the performance of the suburbs we have recommended since our first report in Q1 2017 and they have outperformed the nationally reported statistics. 
For example, the 16 suburbs we have recommended across Melbourne have achieved an average annual growth of 0.46% over the last 12 months, compared to Corelogic’s reported -9.8% across all of Melbourne! In Brisbane, we achieved 1.87% growth compared to Corelogic’s reported citywide change of -1.4% and Adelaide achieved 1.91% growth compared to 0.8%. And you have heard us say it before, there are always markets within markets and it doesn’t stop at suburb level it goes right down to street and even house level. Which is why it is so important to have a grassroots understanding of a suburb, so you know the best streets, the developing streets and whether houses or units are likely to be stronger performers in that suburb.
Royal Commission and the Credit Squeeze
The Royal Commission into the misconduct of the Banking, Superannuation and Financial Service Industry was released in February. Positive credit reporting is here to stay and lenders and borrowers are both adapting to these more stringent requirements. The RBA has urged the bank to open up their loan books again but with the extra level of scrutiny required around “Living Expenses” it is not that simple. Our best advice to borrowers is apply for you pre-approval early, loan approval is taking longer to secure and you don’t want to miss out on your dream property because the loan approval process is taking longer than expected. One of the more contentious Royal Commission’s recommendations was that by July 2020 trailing commissions for mortgage brokers be banned and that an upfront fee for service model be implemented (paid by the borrower). The 20,000 mortgage broking companies in Australia were up in arms and reacted swiftly and strongly. The Liberal Government has granted a reprieve stating they will not ban trailing commissions but include it as part of the CFR/ACCC review in 3 years. The Labour government will implement the recommendation and ban trailing commissions if voted into power. You can read more about this in our blog – The Impact of the RC on the Property Market.
Foreign Investors
Foreign investment in property has fallen to the lowest levels in 10 years, tumbling 58 percent to $13 billion in 2017-18. Chinese buyers still account for a majority of residential real estate approvals – spending $12.7 billion in 2017-18, a 17 percent decrease on the 2016-17. Victoria is still the housing market of choice, with foreign investors and buyers investing $5.1 billion into Victorian residential real estate. The state received nearly 50 percent of all FIRB approvals last year, compared with 23 percent in NSW and 17 percent in Queensland. Source: The Urban Developer
Federal Government Election
With the Federal Government election looming, Labor’s proposal to limit negative gearing to newly built homes and reduce the capital gains discount from 50% to 25% is a hot topic. And whilst it doesn’t appear to be getting as much air time the Greens Party has proposed even more stringent changes, eliminating negative gearing entirely and doing away with the tax concession for all properties purchased on or after 1 July 2015. With every man and his dog speculating on the impacts negative gearing reforms may have on the property market you can find just about any opinion you want to hear. And whilst we don’t believe the only reason that investors should invest in the market we do believe there will be a reduction in investors in the market initially and this will reduce competition further. You can read more about this in our blog – Negative gearing reforms could have investors and homeowners missing out.
What’s propping the market up?
Whilst there has been a decline in the number of investors in the property market, owner-occupiers are taking advantage of market conditions to upgrade, downsize or buy their first home. Owner-occupiers are more emotional buyers and value different factors in the market, negative gearing or rental yields are unimportant but lifestyle, proximity to family, friends and schools are all significant factors.
Antony Bucello, Director at National Buyer Properties commented “The homeowner has become our most active client. They are taking advantage of market conditions to upgrade or downsize their homes and are really pushing for a good buy that matches their criteria.”
Economic conditions around the country remain strong. According to ABS data Australian labor market remains strong. There has been a significant increase in employment and the unemployment rate is 5.0%. Significant investment in infrastructure in Victoria, Queensland and South Australia all increase job employment opportunities and can effect property prices of suburbs benefiting from the infrastructure development. Population growth continues to remain strong from overseas migration and interstate migration. Queensland netted the highest gain from interstate migration, whilst Victoria recorded the highest growth rate overall. (Source: ABC September 2018 – latest available) Interest rates remain low and the Reserve Bank meeting in April left the cash rate unchanged at 1.5 percent, as it has been since August 2016. The standard variable rate remained at 5.37 percent.
Overall the 2019 Calendar year is expected to present both challenges and opportunities to all involved in the Property Markets. Many are waiting to hear about election parties promises and how it can affect the property market – and this may stall the investor market until the election results are known. If you are an owner-occupier now is a good time to buy, your dollar will go further and even for investors if you want to take advantage of current negative gearing policies there’s no better time to buy….but be selective in the best asset to outperform the market and even better engage an expert Buyer Agent!
Read on for our capital city and state review by our State Managers in Melbourne, Brisbane and Adelaide.
State Overview
Quarter 1 for 2019 started slowly, as it traditionally does each year. Summer holidays, festive celebrations keep everyone busy enjoying life and time with family and friends.
The real estate market doesn’t really kick off until mid-February. And now that we have had a month of activity, it is still apparent that there are low stock levels for A-grade property. Owners of A-grade stock that don’t need to sell are sitting tight and waiting out the market. People placing their properties on the market to date have been because they need to sell, whether because of finances or taking advantage of the market conditions to upsize.
Whilst overall auction clearance rates are still around 10% lower than the same time last year, what we have seen lately is an increase in clearance rates from the low 50’s to the mid and high 50’s. A good sign for the market! And interestingly, listed auction numbers (according to the REIV) are higher than the same time last year and this combined with the steadying clearance rate will return consumer confidence to the market and therefore more A-grade stock being listed.
Data Source: Sold Price – No January data released
Owner Occupiers are dominating the buyer market with investors adjusting to tightened lending conditions or waiting for the wash out of the Royal Commission.
The sub $1 million market continues to drive forward but we are also starting to see some segments of the high end market bounce back. As evidenced by recent auctions in Ascot Vale and Surrey Hills, which both attracted 5 bidders and sold well above reserve:
- Surrey Hills – A 15-year-old five-bedroom residence on 910sq m at 51 Kennealy Street. The agents were quoting $3.2-3.5m but 5 bidders pushed it to $3.72m.
- Ascot Vale – A 3 bed, 2 bath Victorian weatherboard at 4 Burton Cres, was quoted at $1.275-1.375m had 5 bidders push it to $1.452m. And we know there were more bidders there that didn’t get a chance to get involved.
Other strong economic factors are
The Australian Government has committed up to $5 billion towards the construction of a rail link from Melbourne Airport to the Melbourne CBD. This funding, to be equally matched by the Victorian Government, will ensure this long-awaited, nationally significant project can be delivered.
The rail link will also provide a fast and reliable service to passengers and commuters traveling between Melbourne Airport and the Melbourne CBD. And has the potential to unlock north-west regional Victoria and may open up new areas for affordable housing around Melbourne Airport and north-west Melbourne.
There continues to be significant investment in Victoria’s Infrastructure including not only the Melbourne Airport Rail Link but the North East Link and the Geelong Rail Line as well.
Population growth from interstate migration continues to be strong, Victoria netted the second highest net gain in Australia (behind Queensland). Overall, Victoria recorded the highest growth rate of all states and territories at 2.2%.
Next Quarter
An increase in new stock levels is encouraging and with the dust settling from the Royal Commission, and the Federal Election taking place in May we expect the market will stablise further and market activity will increase gradually.
The lending environment should stablise further and possibly relax, which is demonstrated by some of the major banks lifting the cap on Interest Only loans.
Good properties sell well in almost all market conditions, whether it’s a balanced, buyer’s or seller’s market.
Carrum - "Don't look down on Carrum"
Overview
At some point in time, there must have been a good ad campaign because the name Carrum Downs rings a bell with many people, but its lesser known and underrated neighbour Carrum absolutely outshines it when it comes to location and lifestyle.
Carrum is a small residential coastal suburb nestled between Bonbeach and Seaford in Port Phillip Bay. And this proximity to the water underpins the value growth in Carrum.
Carrum has excellent access to public transport, freeways, the Eastlink, shops, restaurants, schools, clubs and countryside. It will take you about an hour to get into the Melbourne CBD by train, but if you are looking for extra shopping or more nightlife Frankston is only a 15-minute drive away.
Next door is the beautiful Patterson Lakes offering walking trails and four public launching ramps, the lakes join Patterson River to Port Phillip, and includes the Patterson Lakes Marina and its facilities. Patterson River is one of the most popular places in the state to fish, stroll and launch your boat.
There is a good mix of housing in Carrum, including old and new houses, townhouses and units. The residents in this suburb know they are on a good wicket, and property is tightly held as evidenced by the 70.6% owner-occupier rate. The population is generally older families but young families are eager to move in and are snapping up properties when they become available.
Since 2016 the property price for houses has risen from $770,000 to $1,002,500. There has been a small dip in growth in the last 12 months of -.0.51% but that still places the average annual growth at 7.01%!
And whilst it may not be the sleeper real estate town it use to be there is still plenty of opportunity to buy here and enjoy all that Carrum has to offer.
And if you don’t believe us, listen to the locals on Homely “The beach is heavenly. It is like living in a little country town as far as community spirit is concerned. Very family orientated town – lots of young families are moving in. Carrum is a veggie patch/chooks in the backyard kind of place and in summer it has a beautiful holiday feel to it.”
Purchase Example
This 4 bedroom, 33 square, immaculate low maintenance and stylish family home sold for $1.025 million in December 2018. Only 2 years old (at the time) and embracing a family-focused design; this home offers 3 separate living areas, 2 bathrooms, fitted home office and the most functional floor plan for all year round living. Located adjacent to the Carrum Primary School and within a 5-minute walking distance to Carrum train station, shops, cafes and the pristine Carrum beach this home is superbly located.
by Antony Bucello
Director and Victorian State Manager
Antony is married with 2 children and lives in Lower Templestowe, Victoria. Educated at Swinburne University, his sales and marketing career has spanned over 30 years in both the Financial Services and Property sectors. Having been involved in countless property purchases for his clients over the years, he is now a leading Melbourne Buyer Advocate.
0418 131 950 or email me
Market Overview
Economy and job growth is booming in Brisbane.
Brisbane CBD is now experiencing the strongest employment growth since the decline of the mining boom in 2013. The job recovery is largely fuelled by affordability and population growth. Up to 13 major projects with a value of over $26 Billion have commenced in the Inner City of Brisbane.
South-east Queensland could be green-lit for the biggest “city deal” in Australia, with a $58 billion proposal to guide its growth, and the prime minister announcing his support for the major plan.
With a focus on supporting diverse sectors within the region including housing and planning, tourism, manufacturing and education, the SEQ City Deal could also pave the way for government-owned land to be opened for development.
Noosa continues to outperform the rest of Queensland and retains its title of the state’s powerhouse property market. Noosa’s prestige house and unit market did some of the heavy lifting and posted very strong annual results. The QLD Market Monitor reported that this trend is reflected in the Brisbane LGA market and the Gold Coast market. Local agents are reporting the upper end of the market is performing solidly, even ‘firing along’.
The Queensland Market Monitor continues that the residential property market in Queensland historically avoids the boom and bust cycle seen elsewhere in Australia due to consistent, moderate growth.
This time last year in our Quarter 1 2018 report we recommended suburbs to watch as Riverhills and Bulimba, they have both enjoyed positive growth in the last 12 months, 6.1% and 5.1% respectively.
However, the tighter lending conditions are being felt to some extent up here, there are reports of first home buyers who had pre-approval later being rejected. The good news for interstate investors is if the tightened lending practices are preventing them from securing large loans Queensland’s affordability (median house price of $675,000) is making it an appealing place to invest.
Queensland still has an oversupply of units though Brisbane Council has taken steps to reduce the influx. The Council voted to ban apartments in Brisbane’s suburbs with zone “low-density residential. The call to “protect the Brisbane backyard” triumphed, with a vote passed by Brisbane City Council to remove provisions allowing for multiple dwellings on blocks of more than 3,000 square metres.
Councilors voted unanimously in favour of the temporary local planning instrument, provided for in the Planning Act 2016, to restrict multi-residential development in low-density areas. “Council wants to put a stop to cookie-cutter townhouse developments and instead protect the Brisbane backyard and [its] unique character,” City Planning Chairman Matthew Bourke said. Council said the amendment to the city plan will protect the character of Brisbane’s suburbs.
The vote, which was carried out as council awaits state government authorisation, has been derided as politicking by planning experts.
Even though the vote was unanimous not everyone outside of the council agrees. “Finding the missing middle, where the goal is to offer greater housing diversity such as townhouses, duplexes, low- and medium-rise apartment buildings [is] an important way to ensure people can stay within their communities throughout their lives,” a government spokesperson said.
An article by Rickwise Property compiled a list of the Top 10 Danger Zones throughout Australia, identifying areas with a large stock of off-the-plan units, especially in the cases of oversupply, to be the most at risk. Three Queensland suburbs made it on to the list; Fortitude Valley, Brisbane City and South Brisbane. Between them, there were 7,788 new units proposed in the next 24 months.
Auction Clearance Rates
CoreLogic data reveal transaction volumes are falling. Auction numbers are all falling and nationally. Brisbane’s fall has not been as deep as some of the other states but are sitting just below the 40 percent clearance rate.
Next Quarter
The predictions for next quarter is that Queensland, specifically Brisbane, is it will continue to hold its own. Sustainable moderate growth will continue in most suburbs with the inner city ring (within 6 kms) remaining buoyant and experiencing high growth.
Loan approval is becoming more difficult and potential borrowers that have had to renew their preapproval have had their amounts reduced. For example, loans of $600k that were previously approved becoming $500k. If you have loan pre-approval it is not the time to pay the wait and see game if you want to buy the best property for your budget.
The apartment market is showing signs of recovery, construction has slowed and people are beginning to buy with more confidence in the market.
Arana Hills - "The hills are alive"
Overview
Located 12kms NW of the CBD in the Moreton Bay Shire Arana Hills is about to enjoy a surge in popularity.
Situated on the doorstep of D`Aguilar Range and National park and surrounded by bush and walking paths if “getting close to nature” is your goal then there is no better suburb to help you achieve this.
Arana hills is also benefiting from upgrades to local shopping centres so you don’t have far to trek for the daily perishables and if you want to make a shopping day of it then the major “Brookside” & Chermside shopping malls are not too far away either.
If the city buzz is a necessity then jump on the train as Grovely station is a short walk from most of the suburb and a trip by car will only set you back 25 mins.
With all the lifestyle areas catered for and an abundance of schools available Arana hills is now set to be on the radar of smart investors and owner occupiers seeking still affordable properties. But don’t hold back as the affordability factor is about to change.
Purchase Example
This genuine 4 bedroom home is located in a very convenient position close to everything including shopping centre & train. Inside features a substantial modern kitchen with plenty of bench space & ample storage alongside the bright living spaces with plantation shutters throughout & timber French doors opening to the front verandah overlooking parkland. Step outside the back door to find a huge covered back deck with an insulated roof flowing out to the lush backyard. Bught for $535,000 in March 2019.
View the full listing here.
Vacancy Rates and Median Rents
Rental Market
Brisbane Q1 Vacancy Rate 2.6%, NPB Q1 Vacancy Rate 0.006%
Well, the first quarter of 2019 went as anticipated – Busy! Properties were rented before existing tenants vacated, and we were able to secure increases on a few properties. Low or nil vacancy periods during this time is one of the major positives for landlords ensuring that the rental income continues to come in without too much of a “gap” between tenants. The demand was through most of the quarter – only slowing down in the last couple of weeks of March.
Properties were being rented at the first inspection, and owners had quite a choice of applicants to choose from. We did find that due to the huge demand, applicants were applying for multiple properties, so ensuring that their application was processed and finalised within hours allowed us to secure tenants a lot faster.
The next quarter is quite the opposite – starting off slowly, we usually get a slight increase towards the end as there are many tenants moving around after their initial 6-month lease.
The summer in Queensland was again extremely hot and humid. Properties needed to have an air con or ceiling fans for the tenants to even consider applying for the property. Pets were another consideration for a lot of enquiries – we found that every advertised property (even those not specifying pets considered) were receiving queries on allowing pets.
The vacancy rate for Brisbane at the end of the quarter was still a high 2.6%, while NPB vacancy rate remains was 0.006%. Median rental rates for the quarter were:
End of Q1 – Houses $457 Units $371
End of Q4 – Houses $451 Units $371
The second quarter is usually a little slower with an increase in enquiries towards the end due to the fact that this is 6 months after the January peak. This also coincides with the school and University breaks which impacts quite a lot on enquiry levels with properties close to these areas.
In Queensland, a review of the Residential Tenancies and Rooming Accommodation Act is underway and at time of writing, the State Government had yet to share a preview of its proposed legislation following an extensive 12-year review. Members of Housing and Public Works Ministry have previously advised the REIQ that a discussion paper would be available by February or March 2019 and we eagerly await the opportunity to review the proposed changes.
by Stephen McGee
Queensland State Manager
Stephen is married and lives in a bayside suburb of Brisbane. Stephen brings over 15 years of experience in residential property to National Property Buyers QLD, including residential property investment and small-scale developments. Stephen is a Committee Member of the REIQ Buyers Agent Chapter and was voted “Best Buyers Agent in Queensland” by his clients in the Investors Choice Awards of 2015.
0488 501 170 or email me
Market Overview
Confidence is high in Adelaide!
There is no sign of the market slowing and the downturn that is being experienced by other states is not felt here. The market is erring towards being a vendors market but buyers are happy to pay what vendors are asking for, especially for family homes.
The first quarter of the year Adelaide has so many great activities on, which draw tourist and the locals alike. The Fringe Festival, the Supaloop 500, the Adelaide Festival and Adelaide’s Writer’s week. It’s not known as Mad March for nothing, and some of these extra visitors do swing by open houses as they are keen to say what we have to offer.
The federal government, South Australian government and the City of Adelaide council signed the Adelaide City Deal, a $551 million agreement designed to boost economic growth and tourism as well as innovation potential, according to a joint release by Prime Minister Scott Morrison, premier of South Australia Steven Marshall, the minister for immigration, citizenship and multicultural affairs David Coleman and lord mayor of Adelaide Sandy Verschoor.
As part of the deal, the Lot Fourteen area located in Adelaide’s north-eastern corner is set to be renovated into a “renovation precinct”, where it will base the headquarters of the Australian Space Agency and its mission control facility, the Australian Space Discovery Centre and other cultural attractions, businesses and education facilities.
In Quarter 1 we have repeatedly experienced the highest clearance rate in the country. CoreLogic data reports that Adelaide’s clearance rate sits at 66%, 5% higher than Sydney, 12% higher than Melbourne and a huge 33% higher than Brisbane in March.
Data Source: Sold Price (no January data for 2019 was released)
And talking about school zones a few major changes have started to be implemented in Adelaide. Firstly, year 7 students, unlike the others states use to attend school at primary level and are now being migrated into the secondary college system. Whilst this is alleviating pressure on capacity for primary schools, some of the more popular secondary colleges are feeling the pressure. In addition, city high school rezoning has been completed and parents that paid a premium to live in a particular school now find their properties are cut out and in some cases as a consequence $150,000 stripped from their property value. Adelaide High and Adelaide Botanic High (brand new purpose-built school) have had their zones reduced in a bid to reduce pressure on both institutions.
Opposition minister for education Susan Close “I wonder what’s going to happen to real estate prices in the area where parents have bought, understanding that their children will be going to one of these Adelaide city high schools,” she said.
At a national level the excitement of the Royal Commission findings being released has started to quiet down. Mortgage Brokers were up in arms with the recommendation that trailing commissions being banned, however, the Liberal Government has already advised they will not alter trailing commissions and will review it in 3 years.
With the Federal Government election looming, Labor’s proposal to limit negative gearing to newly built homes and reduce the capital gains discount from 50% to 25% and the Green’s plan to take it even further is a hot topic of debate. We unpack some of the potential impacts in our latest blog “Negative gearing reforms could have investors and homeowners missing out”
Our typical client is an interstate or overseas investor or family looking to relocate to Adelaide. We are finding interstate investors on average have around $500k to spend and are definitely open to getting looking to Adelaide as they get more bang for their buck than Sydney or Melbourne can offer.
Next Quarter
We are looking forward to Quarter 2 when many of the green leafy suburbs start their listings. As the leaves turn from green to brown suburbs located in The Hills really begin to shine.
Whilst the market for family homes continues to boom we have noticed other markets (eg smaller properties) are starting to experience a slight cooling, and vendors are having to slightly adjust their expectations to avoid properties being passed in at auction.
Thebarton - "A stone's throw"
Overview
Cityside living under $600,000!
It is a great time to buy in Thebarton! And the 1,427 residents that are predominantly 20-29 years old know it. These young primarily childless couples are enjoying the proximity to the city that this inner western suburb abutting the River Torrens and the North Adelaide parklands provides.
It is a small suburb covering only 1.2 square kilometres and located on Adelaide’s city fringe which offers convenient access to everything. You can walk to the CBD, or catch the bus 5 to 6 stops or there is a local tram service that connects you from the Adelaide Entertainment Centre to the beach at Glenelg. The ease of access to the city is highly desired by working professionals and couples. And the addition of great local shops, cafes and even a pub or two makes Thebarton a highly desirable suburb.
There is a decent Foodland and a Coles Express in the tiny suburbs borders and a Big W just outside. The Thebarton Aquatic Centre and Community Centre are next door in Torrensville. The Australian Company of Performing Arts is located here and a state of the art start-up support agency, TechInSA.
The suburb is full of character homes, modern townhouses and courtyard homes. There are lots of small parks and playgrounds for the kids and Bonython Park is lovely.
Thebarton is in the combined school zone for Adelaide High School and the New Botanic High School. Both are extremely sought after with tight zoning restrictions.
There is still a small industrial zone of Thebarton remaining which will be developed over the coming years, which will only drive this small pocket of the west even further.
Purchase Example
This exquisitely renovated character home c1910 blends the best of timeless charm and character with modern styling. This magnificent 4 bedroom residence is enhanced by its location and within the desired Adelaide Botanic High School zone and other finest private schools. Located within close proximity to Adelaide CBD (4.2km), within walking distance to the tram, close to Henley Beach Road, café/ shopping precinct and Royal Adelaide Hospital. Ideal for Professionals, families, retirees looking for style, space and low maintenance.
View the agent listing here.
Vacancy Rates and Median Prices
As always, coming out of the New Year fog, and into the festival season that is our first quarter in Adelaide, there is plenty of action in the rental market. Properties of all types received good interest and were generally leasing within 1- 2 weeks of advertising commencing. There has been increased inquiry from interstate movers to Adelaide who needing housing lined up for when they arrive.
The state vacancy rate has hovered just over 1% for the quarter. Whilst there is a large pool of prospective tenants looking for rental properties there is also a decent pool of properties. Tenants are aware that there are similar properties available and applying for multiple at once and then taking their pick. This can be quite frustrating for landlords when they think they have a quality tenant lined up, but until funds are paid and a Residential Tenancy Agreement is signed, this isn’t the case.
In this competitive environment, properties must be marketed well, priced accordingly and kept in a good, clean manner for inspections.
Families have been seeking properties in decent school zones during the past quarter ensuring they are settled in and ready for the school year to commence. Lifestyle is another important factor prospective tenants consider. This can be anything from their potential commute to work, activities available on the weekends, shopping, public transport and medical facilities, plus parks, playgrounds, beaches and eateries.
The next quarter historically sees the market soften slightly, however with quality homes the enquiry will remain strong and qualified.
As a landlord remember the 3 P’s – Position, Presentation and Price; often all it takes to attract the right tenant is a slight tweak to one of these, and of course the bonus P – a Professional.
by Katherine Skinner
Buyers Agent and Senior Property Manager
Katherine Skinner began her career in property over a decade ago in Melbourne working in Buyer’s Advocacy and Property Management. Returning to her home town of Adelaide in 2009, Katherine quickly established a reputation as an exceptionally thorough and diligent practitioner, providing outstanding customer service coupled with a calm and positive attitude while working with some of Adelaide’s most highly regarded agencies.
0438 729 631 or email me
If you want to know more about any of the markets covered in this edition don’t hesitate to contact our State Managers here.
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