Property still going for record prices despite market downturn

There’s still some signs the property market remains healthy despite some grim outlooks from market analysts.

PropTrack’s report on the national housing market in February shows a rise in housing prices in most capital cities but notes new listings are way down on the same time in 2022.

“New listings in capital cities picked up in February ahead of the autumn selling season, rising 26.6 per cent month-on-month,” writes PropTrack economist Angus Moore.

“Even so, new listings were down compared to a year ago, with 13.2 per cent fewer new listings compared to the busy start to 2022.”

However, the total number of listings was up 9.6 per cent year-on-year, meaning more choice for buyers.

And demand is tipped to stay strong, with wages growth on a slow uptick and higher migration also propping up that demand.

But with interest rates tipped to rise further at April’s Reserve Bank meeting, buyers and sellers alike have adopted a “wait and see” attitude.

That’s the belief of Sydney real estate agent Kiki Bermudez, associate director with Raine and Horne Unlimited.

“Compared to last year, it’s a totally different market,” Ms Bermudez told NCA NewsWire.

“People were quite spoiled for some time with low interest rates, and people certainly aren’t holding back. For example, I had seven registered bidders in an auction last week.

“But the question is how long will the market stay this way? People, especially those looking to sell, have this ‘wait and see’ attitude, but I’d be selling at the moment.”

That market uncertainty is being driven by interest rate decisions, with key economic figures like CPI and retail spending to be released late in March sure to influence the RBA’s April rates decision.

Despite the poor forecast, properties continue to go for record prices.

For example, a Sydney unit was recently sold for $1.37m in Coogee, with the same two-bed one-bath unit selling for $834k in December 2015.

The living space of 10/2-6 Abbott Street, Coogee, which has sold for $1.37m.

The same living space of the $1.37m apartment before it was renovated.

The unit underwent significant renovations since then, with the new sale price setting a record for the Abbott St unit block.

It follows a vacant block in the Sydney waterfront suburb of Mosman selling for $8m earlier in March.

It was the first time the 683sq m block had changed hands in 70 years.

And PropTrack analysis shows property is also moving fast in states like Queensland, Tasmania, Western Australia, and Adelaide, which all had suburbs in the top 10 for shortest median times houses were on the market in the year to February.

The Brisbane suburb of Meadowbrook led the charge with houses on the market for just 10 days before they were snapped up.

“Interest rate increases have reduced the amount potential buyers are able to borrow,” said Economic Analyst at REA Group Megan Lieu.

“While this has decreased demand from its record highs over the past two years, it still remains relatively strong.

“We expect competition to persist, especially in more affordable states such as Queensland, Adelaide and Western Australia.”

Article source: Queensland Property Investor