Market Insights with Kannan Subramanian | July 2024

Migration Impact on Market

The current migration trends definitely have an impact on the market, especially with rental properties and first home buyers looking to get into the market. There is a lack of supply and a lot of demand, which is putting pressure on prices for rental homes as well.

Buyers are being very cautious in the way things are progressing. Supply has evened out, with not a lot of properties on the market, which brings a little bit of competition. However, buyers are being very cautious in terms of moving forward with purchasing and are waiting for the right property to come along.

For sellers, this could be a good time to act if you are thinking of doing something. Most of the sellers or vendors we are working with are trying to hold off until the later end of the year. Over the next couple of months, if the interest rates do go up as speculated, it is probably a good time to consider putting your property on the market.

Housing Crisis, Inflation, and Interest Rates

There haven’t been any recent government interventions, but the new land tax laws that came into place are definitely having a solid impact on investment properties.

Many landlords are finding it hard to hold on to investment properties, given the rising interest rates and new land tax laws. This is putting a lot of pressure on landlords, leading to the sale of investment properties.

Buyer demand is generally skewed towards cheaper markets. Perth is now one of the primary markets driving growth in the capital cities. In June, Perth accounted for 32.4 percent of the 0.7 percent uplift in CoreLogic’s Capital City Home Value Index. Adelaide also contributed to the headline growth figure, increasing from 4.1 percent a year ago to 14.2 percent.

If there is another 25 basis point rise in August, we will likely see median house repayments going up to $4,000 a month. This will have a significant impact on many families already struggling with living costs.

Preparing for Selling in Spring

If you’re looking to sell this Spring, your essential preparations should include attending to any necessary home improvements, such as garden work, washing or painting the front, and general decluttering.

Are You Ready to Explore Your Opportunities?

The current market trends present both opportunities and challenges for you. With careful planning and timely action, you can navigate these conditions to your advantage. Whether you’re looking to buy, sell, or need advice on managing your investment properties, it’s crucial to stay informed and prepared.

For personalised advice and assistance with all your real estate needs, feel free to get in touch with me. I’m here to help you make informed decisions and achieve your real estate goals. Contact me today to discuss your options.