We are continuing to experience increased buyer enquiry and are starting to see a very real tightening of stock. Our recent Auction results reflect this – with properties selling under the hammer, or very shortly after Auction campaigns, and buyer competition increasing.
Mark McGill sold 4/52 Edward Street, Alexandra Headland under the hammer on the weekend, and there was very competitive bidding on the day; two of Mark’s listings from the Auction the weekend before are now also under contract – 2/69 Anzac Avenue, Maroochydore, and 11 Red Cedar Street, Sippy Downs. Jared Young sold 9 Highland Place, Buderim post-auction and our Agents are dealing with increased volumes of genuine buyers, many of them investors.
What is driving this?
With rental growth over the past 12 months outpacing home growth, with a 3.5%* increase, investors are returning to the property market in droves. One of the reasons for this is low interest rates, with the official cash interest rate at record lows, investors are investing in property despite only a very moderate growth to yield, positioning themselves for long term capital growth, as opposed to keeping their money in the bank and earning very little interest.
With lower interest rates and home value growth remaining moderate, and finance starting to become easier to obtain after a tight few years, investing in property is becoming more attractive, number crunching showing it is one way to secure a superior return, as the basis point spread between cash rate and rental yields over time widen.
*figure obtained RP Data, based on capital city growth
We are embracing the increasing market activity and are seeking listings to meet demand. If you’ve been thinking about selling, but were concerned about the market, now may be the time to get us to do an appraisal, there is a surge of activity which we anticipate will gain momentum as the year continues.
It’s the first week of winter, and the change of season has certainly made its presence felt. However, the reward is beautiful, clear sunny days. Enjoy the long weekend all!
