At Air Design Australia we have seen continued high buyer activity in the property market.
In the week to Nov 2nd, there were 1,757 homes taken to auction across the combined capital cities, up from 1,427 over the previous week and 1,555 this time last year. Approximately 77.0 per cent were successful which is the highest preliminary clearance rate recorded since the week ending 1st March (77.1 per cent).
Historically cuts to interest rates have fuelled housing market activity and generally aligned with upwards pressure on dwelling prices. If passed on by the banks, which is highly likely, we will see mortgage rates fall further from their already record lows. With the trend in housing values already rising around most areas of the country, there is a good chance lower rates could see momentum building across the nation.
Although Australian’s have Home Builder Packages and First Home Owner incentives, we find it is the self -funded retiree segment who feel the need to see increase in their investment portfolio with cash and super rates low.
Changes to work-place arrangements and awareness around work-life benefits has seen an increase in the 40+ age group investing in areas they may not have considered previously.
The above mentioned stimulus of low interest rates, federal and state level incentives like stamp duty concessions and building grants, are likely to be enough to outweigh the potential negatives facing the property market. These potential negatives include the wind back of JobKeeper, and the expiry of home loan repayment deferrals, which are moving through their peak period of expiry this month.
As Australia is seen as a world leader in controlling COVID-19, property is still a sure-fire bet and overall, it is a great time to buy. with Urban-centric business travel significantly stalled, it is worth looking out-side of capital cities to areas with both good infrastructure and future development planing in place. For short-term rental returns, rural/drive-to property are seeing unprecedented demand for short-term rentals with limited /expensive air travel currently in place. As borders start to open, townships rather than capitals will be on the shopping list for those looking for a better work-life balance and better bang for their buck.
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