The rematch is over. David versus Goliath 2 has been fought and won. And while the bout was billed as a match of Biblical proportions, -it turned into a one-sided affair, a rout, a shellacking. The result...?? Same old, same old. The innocent, fresh-faced real estate market has KOed the evil giant that came wandering out of the People’s Republic of China with a worldwide reputation as invincible. Two nil to David. Another giant righteously spanked.
It didn’t seem likely early on, but the local real estate market has not only survived the fear, isolation and economic stasis of the pandemic, it has thrived. It has fed off the weakness of other investment spheres to become the astute investor’s default acquisition. Success begets success. Why invest in shares, gold, art or crypto-whatsamajigs, when real estate is winning all the medals at the Investment Olympics? The $60 billion dollars per annum Australians spend on overseas trips is being largely redirected into the property market. And given the cash rate offered by the banks, you’d be foolish to leave your money with them.
And now, assuming we are all sensible enough, and community-minded enough, to get vaccinated, by the end of September, the shackles should come off. Forget the real estate market for a moment and imagine how good it will feel to hug the people you love at Christmas.
Okay, having forgotten the market for that moment we are back. At Abercromby’s we were thrilled that the month of August was one of the best transaction months in our history. Both vendors and purchasers seem unperturbed by this lockdown, and have accepted virtual auctions with delight. A number of our sales were made to people purchasing homes off viewing videos with no physical inspections. Imagine that a year ago! We are an endlessly adaptable species.
While it has been impossible to open up properties for inspection before sale, Abercromby’s properties are available for inspection via video. And if the market has proven this robust during these unprecedentedly strange couple of years, one can only imagine how it will thrive when we are whole and free again. At Abercromby’s we need stock. We just keep selling properties, because our entire team is involved in each sale. So now would be the time to list your property and let our discreet creative marketing strategy maximise your price.
Our experienced and eager sales team has recently sold these beautiful properties:
- 6 Stuart Street, ARMADALE
- 99 George Street, EAST MELBOURNE
- 1575 Malvern Road, GLEN IRIS
- 41 McArthur Street, MALVERN
- 18 Parslow Street, MALVERN
- 18A Parslow Street, MALVERN
- 2/13 Hedgeley Avenue, MALVERN EAST,
- 80 Turner Avenue, MOUNT MACEDON
- 30 Little Leveson Street, NORTH MELBOURNE
- 4 Packington Place, PRAHRAN
- 92 Richmond Terrace, RICHMOND
- G01/1-23 Millswyn Street, SOUTH YARRA,
- 1/24 Rockley Road, SOUTH YARRA
- 3/24 Rockley Road, SOUTH YARRA
- 6/24 Rockley Road, SOUTH YARRA
- 26 Church Street, TOORAK
- 401/16 Lansell Road, TOORAK
- 1/65 Lansell Road, TOORAK
- 11 Montalto Avenue, TOORAK
PROPERTY MANAGEMENT UPDATE
We are all happy to see the 2021 lockdown winter in the rearview mirror, and to notice the metaphorical buds starting to burst forth on the rental market. Judging by the interest we have received at Abercromby’s, there is a great deal of pent up demand for rental properties that no one could inspect in the last month. And now with a stated timeline from the State Government, and a noticeable change in rhetoric from the Premier, we expect to see increased movement and in the rental market. After all, very few people are perusing rental properties when they can’t go further than 5km from their home. The cessation of that rule, among others, will free the market.
And with Allan Joyce saying that Qantas will be flying internationally by the end of the year, we expect to see international clientele ease back into the leasing market in Melbourne. Whilst there is room for optimism later this year and into next, until we are fully open, rents will remain at current levels. A strong sales market is causing a shortage of houses for rent and we expect this to remain the case for a while yet.
There is a general view now that lockdowns are about to become an obsolete methodology. People are done with them. Civil disobedience is rising almost as fast as the vaccination rate, which will shortly render them superfluous. The end of lockdowns will give the economy not only a real-time boost, - with businesses opening up, but a psychological boost as well. (The study of economics is largely a study of human psychology.) So it’s hard to see the real estate market doing anything but continue in the rude health it’s shown right through this rudely unhealthy time.
The Age reports that Melbourne property prices went up by 1.3% in the last month. House values are now 14% above what they were at the start of the year, and have risen 16% in the last 12 months, the most rapid rise in more than 25 years.
The cash rate is steady at historic lows and no economist sees this changing with the job market made precarious by Covid. So money will be easy to come by. And at such times debt becomes a great lever by which investors can lift their wealth.