In large part driven by media coverage – the common perception is that the market is in a bad way and we should be nervous about it.
And, whilst that may be true about the market overall, I’m seeing a different story in the niche I specialise in which is properties within circa 10 km of the CBD.
There is a lack of supply in my niche because of this general nervousness and there are even fewer high quality properties.
By high quality properties, I mean those that tick key boxes such as:
- Architectural charm
- Locality
- Orientation
- Floor plan
- Access to public transport.
This double whammy – fewer properties and even fewer high quality ones – along with some growth in expat buyers from the UK and Asia, is producing good results in my niche as evidenced by the strong bidding from multiple parties that I am seeing.
This might be disappointing for buyers looking for a high-quality bargain, but I’m sure vendors are happy.
So where to from here?
I don’t see this strength reducing significantly in autumn as disappointed buyers re-adjust and supply stays thin, according to agents I’m talking to who seem not their normal bullish selves about upcoming listings.
Properties needing renovation are continuing to be treated with caution by prospective buyers. I suspect we may look back in a few year's time and see this as a good counter-cyclical buying opportunity for houses requiring a renovation.
Interest rates – the press coverage of the impact of interest rate rises I think has been overplayed. The increase in interest rates has definitely reduced pricing but buyers have well and truly priced in likely further interest rises in 2023.
Market sentiment is a subjective assessment. My view is that the market is quietly gaining confidence even if that confidence is relatively gentle.
The potential dampener on price strength could be that growing confidence causes a significant increase in supply as vendors rush to the market.
The press coverage of the property market continues to be simplistic and sensationalist – anything but insightful.
Always interested in your thoughts so don’t hesitate to give me a call on 0457 513 124.
