Now that the election is over, the property market is set to experience some well-needed certainty. One buyer’s agent shares what investors can expect.
Buyer’s agent Anthony Spagnolo at Spagnolo Property has seen on the ground that certainty is returning to the property market since the re-election of the Coalition.
“From the consumers I’ve dealt with so far, and I’m a property investor myself, it has come back somewhat,” Mr Spagnolo said.
While prospects appear to be, barely a week out of the federal election, with certainty already returning to the market, Mr Spagnolo predicts brighter days yet, saying that the market conditions are expected to get better.
By the end of this year, Mr Spagnolo sees the market conditions, particularly in Sydney where he is based, improving considerably, due to the potential of interest rates dropping soon, and as time moves on from the end of the royal commission and APRA’s proposed lending guidelines.
“It’s still a falling market, but by the end of the year, there may be some growth will occur by the end of the year, so the effect will hopefully be reversed somewhat,” Mr Spagnolo said.
However, that does not mean that investors should not be looking for property purchases now.
“There’s always deals out there, so if you have the approvals and serviceability, now is good a time in a slowing market to pick up some good deals,” Mr Spagnolo said.
“I would say now or even to the end of the year, they’ll be more certain that the market [has] a few more green roots shooting out.
“Now would be as good a time as any if you can find the right deal.”
Combining Mr Spagnolo’s perspective in his Sydney base and the consultancy partners he uses based in other states, in his perspective the better hotspots can be found away from the center of capital cities, and more in the middle circle to the outskirts of greater capital city areas.
Signs of positivity in the market are not just being relegated to Mr Spagnolo’s observations; other evidence is pointing to this as well.
CoreLogic’s weekly Property Market Indicator for the week ending 26 May indicated that auction rates are showing higher than usual auction results for the last week, which sat at an eight-month high of of 55.2 per cent. CoreLogic’s data showed Melbourne had a clearance rate of 60.7 per cent, while Sydney recorded 56.5 per cent, with the possibility for Sydney to reach over 60 per cent this week.
The impact is also being felt further north in Brisbane, where Steve Waters, director or Right Property Group, recounted how last week, Brisbane-based agents have been fielding interest from both buyers and sellers since 20 May.
“The first day of business since the election, their phones have not stopped ringing, and that’s the agents,” Mr Waters said.
“If you take that back two weeks before or three weeks before, look, the agents were very confident as well, the market… certainly wasn’t hot, but it was stable, but what’s particularly important to note is that certain markets I’m sure were absolutely dead flat and there was zero confidence before the election because perhaps the fundamentals weren’t there [and] there was oversupply.
“Those areas which were fundamentally correct and there weren’t degrees of oversupply and all the good stuff, they’ve just seen that since the election, it’s just been such a massive uptick in the amount of enquiries they’ve had.”