Where opportunities abound for investors this spring

The network said that the spring uptick has come early, with a notable increase in attendance at open for inspections across July. The number of groups in attendance across the month was 10 per cent higher than it had been in Autumn, and 37 per cent higher than attendance across the summer months.

Maria Milillo, head of property management at Raine & Horne, explained that during the milder spring months, lighter and brighter days are all the more appealing for buyers.

She flagged that “the surge in demand for properties makes this spring a strategic time for investors looking to rebalance their portfolios by listing their properties on the market”.

“Concurrently, a multitude of markets are still grappling with a shortage of property listings, which offers investors considering a sale during spring an exceptional chance to achieve a decent sales results due to reduced competition.”

Ms Milillo went on to state that the fewer listings available is especially significant for those landlords considering putting their property up for sale, given the backdrop of sustained property price increases since the start of the year.

Since February, CoreLogic has reported a 4.1 per cent lift to property prices, making now an ideal time to rebalance.

For those investors who are looking to bolster their portfolio, Ms Milillo also expects this spring to be an ideal time to do so, thanks to a 15 per cent uptick in appraisals seen across July in comparison to April.

According to Ms Milillo: “This means it’s fair to expect that more properties will hit the market as the weather warms up.”

She raised that “investors and self-managed super funds contemplating expanding their property portfolios should also take note of the Reserve Bank’s decision to halt interest rate rises”.

“While there might be more rate rises, we are closer to the end than the beginning of the rate hiking cycle that started 18 months ago. This development presents an excellent opportunity for aspiring landlords to seize the moment this spring and make their moves confidently,” she argued.

It’s a sentiment also held by John Katergarakis, head of property management at Raine & Horne Green Square and Raine & Horne Bexley/Beverly Hills, who raised that eastern Sydney is offering “favourable opportunity for real estate investment” at present.

He’s anticipating “substantial” reduction in vacancy rates for high-quality rental properties, expressing the belief that this transition “offers a prime opportunity for potential investors to enter the market”.

According to him, this demand is particularly high across the suburbs of Waterloo and Bexley – and is peaking for two-bedroom, two-bathroom apartments with a value around $1 million.

“These types of apartments have gained popularity among professional couples who utilise the second bedroom as a home office, as well as among singles who opt to share rent,” Mr Katergarakis stated.

“The presence of a second bathroom enables flatmates to have separate living arrangements, and these apartments also appeal to young families starting out.”

He also raised that “these premium apartments are currently being rented out for approximately $900 to $1,000 per week, translating to an impressive yield of almost 5 per cent”.

“Given interest rates are projected to fall in 2024, these popular properties are expected to become even more enticing options for investors this spring.”

But eastern Sydney is not the only area offering up opportunities, with Adelaide’s Gwen Levesque highlighting that investors are increasingly flocking west, without necessarily setting foot in South Australia.

“Despite many still attending open for inspections, investors are increasingly purchasing properties in suburbs like Andrews Farm, Munno Para West and Gawler without the necessity of a physical property visit.”

She explained that “the convenience of virtual tours and online resources has allowed investors to explore properties from the comfort of their own homes”.

From her position, there’s plenty of promise out there for investors this spring, flagging that “with interest rates currently stable, it presents a favourable time for investors to consider acquiring properties”.

“We also anticipate a surge in property listings during spring, driven by the pleasant weather and an overall improved mood that encourages both selling and buying.

“As the temperature rises, so does the activity in the real estate market,” she remarked.