MORE people will be putting properties on the market, prices will edge up over the first half of the year, and interest rates will perhaps rise towards the end of the year.
In a volatile world with changing conditions, that seems to be the general consensus from property agents throughout the region.
Thoughts come from a 2020 which saw supply dry up, interest rates hit near-zero, and people taking advantage of government incentives to snap up house and land packages.
Uncertainty was cited by some as the reason for low supply. Now, with a vaccine around the corner, and business confidence again starting to rise, the general thought is that people might take their lives off hold and again launch into plans they had in place before the pandemic.
Principals Neil Giles from Browns Plains Real Estate and Peter Mitchell from Harcourts Nexus agreed we would see more of the same in the first half of the year.
“I think things are generally positive,” Mr Giles said.
“I sold three properties sight unseen last month, to people from Sydney and Melbourne. People are getting out of Melbourne, and that’s to Queensland’s advantage right now.”
Mr Mitchell agreed that new technology would remain part of the agents’ toolkit in 2021, offering 3D imaging, increased video of properties for sale, and continued use of Facetime in order to give remote clients – usually investors – an alternative view that would normally be provided by a personal inspection.
“The shortage of properties continues to be the biggest challenge, but there is likely to be steady growth in supply through the year,” he said.
“People will see that properties are selling, and that will trigger a change in mindset, to see the market moving and be given the right level of confidence.
“There is great opportunity for home buyers with interest so low. Some of the properties are cheaper to buy now than they would be to rent.
“And what a time to buy an investment property?”
Mr Mitchell said a property in Shailer Park before Christmas had 25 groups at its first open home.
“Yep, that’s groups. Not people – groups.”
Low interest rates had not seen a decrease in people wanting to rent.
“We’re on a break, but we’re still working behind the scenes to satisfy the demand for rentals,” Mr Mitchell said.
“They’re going like hotcakes.”
Mr Giles said a buoyant market was great for the local economy.
“It’s good for prices, it’s good for banks, it’s good for the building and pest guy, the tradies and everyone else servicing the industry,” he said.
“Supply will change along with that level of confidence.”
Mr Giles said some people who had bought properties would likely find it was easier for them to rent. Others would be attracted by the current rising property prices. Some would move into retirement living.
“Historically, when interest rates start to go up, we’ve been busier than ever. It prompts people to act, so that’s when I expect we’ll see supply rise again,” Mr Giles said.
“Rentals seem to have remained consistent, although prices aren’t moving that much and probably won’t any time soon.
“Overally, there are still gains to be made in Logan and things look more positive here than other parts of the state. Industrial land is being snapped up, and that leads to jobs, which also makes the area attractive.
“Council is doing some good things, and who knows – we might see international travel moving again this year which would be another boost to confidence.”
Leave a Reply