2023 marks the 35th year since Peter Blackshaw real estate first commenced trading – originally from very modest premises at Griffith shops. In that time, we have grown organically and sustainably into the largest network of locally positioned offices across the ACT/surrounds to the South Coast region.
We kicked the year off with a memorable and inspiring experience featuring Michael Crossland in person at the East Hotel—aussie celebrity, international bestselling author and keynote speaker—with many commenting they felt it was the best conference presentation they had ever seen. We recognised our highest achieving sales agents and property managers, and heard from our chief, Andrew Chamberlain.
January has been busy across property management with vacancy low and rents increasing in most areas. For sales the market has carried over the caution from late last year – but with pockets of strength. There were a number of very encouraging auction results from last weekend, and we expect a return to equilibrium as this cycle of interest rate rises finishes its course, perhaps within the next couple of months.
If you’ve been feeling somewhat puzzled about recent sales, with suburb record prices still being broken, you’re not alone… the ACT and surrounding region is a highly complex, resourceful market layered with opportunities. Coming out of the pandemic, the two major drivers impacting our regions residential property prices have been the rising interest rates and the shift of housing preferences in favour of suburban and regional markets. In addition to population and income growth, the enduring capital city house prices, and the uncertainty about the sustainability of prices in regional areas all factor into the macro market trends that make up the complex chasm of the ACT and surrounding regional NSW property markets.
When the balance is just right, this equation is delivering some unpredictably good results for vendors, buyers, and investors. This month, the Canberra market has seen a 1% fall in property prices, and an overall downturn of 5.9% over the last 12 months, and regional NSW an overall downturn of 5.2%. Corelogic Home Value Index Rate, (released Feb 2023) However, the price cycle remains on average 27% higher than the mid-2020 trough.
Our regions are perfectly positioned for long term sustainable growth. According to Tim Lawless, Corelogic Research Director, “regional housing values are holding up better than capital city markets. This will be an interesting trend to watch over the longer term, with more Australians willing to base themselves outside of the capital cities and remote working remaining a viable option across some sectors of the labour force, it’s unlikely we’ll see a mass exodus from regional markets.”
Vendors note, buyers are paying a premium price for “liveable” homes. “The pandemic created one of the greatest lifestyle shifts we have ever experienced, and that is the importance of our home and the community in which our home sits,” Dr Nicola Powell, Domain 2022 End of year report.
With the post-pandemic affects still looming over the Australian investor, as well as the cyclical property downturn—if you have the cash and time to renovate a fixer-upper, this may be the perfect cocktail to buy up property for the long-term. Tips for the savvy investor, try negotiating for a longer settlement period by locking in the price now and paying later. Talk to your agent to gather research on local comparable sales and expected rental yields (paying over 4%).
Notice to all Landlords – regarding Minimum Energy Efficiency Standards for rental properties.
The ACT government has just released the Energy Efficiency Council (EEC) certified approved installers list. Our teams are now working through their lists of properties and will be scheduling in assessments. Your property managers will be in touch with you in the coming weeks.
In the meantime, please keep informed by reading the factsheets and frequently asked questions on the ACT government website.
- Minimum Energy Efficiency Standards for Rental Properties –Rental Providers Factsheet
- Minimum Energy Efficiency Standards for Rental Properties –Rental Providers Checklist
- Minimum Energy Efficiency Standards for Rental Properties –Renters Factsheet
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