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The 2019 calendar year saw much discrepancy in terms of opinions on the apartment market. Looking ahead, here’s what one expert is predicting will play out in 2020.
Adrian Wilson, founder of apartment specialist agency Ayre Real Estate, has shared his 2020 property predictions for vendors, renters and investors.
“Over the past six months, we have seen the market evolve, with ready buyers who have been holding out for the past six to 12 months (or longer) now eager to secure their next property,” Mr Wilson said.
“Most buyers we are meeting have done their research, have got their finance approved and know what they want and, as a result, have been trying to secure properties prior to auction. In part, this is to avoid having to compete against other buyers at the auction, but it also makes sense for buyers to submit strong offers once their due diligence is done.
“There’s no point waiting for a week or two for the auction if you are ready, willing and able and can proceed on an exchange.”
Mr Wilson’s predictions for 2020 include:
1. Stock levels will keep tightening as interest rates continue to be reduced.
2. Sales of properties prior to auction will continue to be popular and are likely to increase.
3. Properties priced $3 million-plus will favour two-stage marketing campaigns, conducting an off-market period first, and if not sold, listing actively online for auction or private treaty.
4. Inner-city lifestyle locations, such as Circular Quay, Barangaroo and, will continue to attract interest from downsizers selling in the suburbs and looking for a luxury apartment.
5. Rental rates to remain steady, or increase marginally, across the board with number of available properties reducing due to supply issues constraining with more owner-occupiers buying.
6. Investors looking for yield are returning to the market with interest rates at record lows.
An apartment is a personal residence within a house or building occupied by several tenants.