If you attended a home open that was scheduled during last Sunday’s Western Derby, you would have been quickly reminded about how much West Australians love their football.
Buyer activity as a whole over the past 7 days was weak, though there was a slight improvement over previous weeks. There are definitely new buyers entering the market but many are still in the research stage of their property hunt. In situations such as this, it is critical for agents to keep in close contact with buyers, understand what they are looking for and suggest property that they might not have considered.
Keeping track of buyers is such a critical task that Caporn Young has recently introduced a new state of the art database management system that can be accessed by our staff anywhere in the world via the internet. This means we can now connect with buyers and sellers even more quickly and efficiently.
Our team achieved a number of strong sales recently, including a beautiful Applecross home that went under offer for above the asking price after only the second home open. When buyers and sellers are both realistic about current market values, deals can be achieved in any market.
Looking ahead, I wouldn't be surprised if investment sellers show a greater willingness to negotiate in the coming weeks, given many will want to dispose of their asset before June 30 and therefore avoid another year of Land Tax.
Thursday, May 19, 2011
Monday, May 16, 2011
WEEKLY PROPERTY MARKET UPDATE
The Federal Budget has been announced and, with its mix of “tough-love” measures, the response has understandably been divided. Despite a number of cutbacks, the overall picture is for a strengthening Australian economy, which according to Treasurer Swan is the envy of the developed world.
For followers of the real estate market, one of the key questions will be how various budget initiatives affect sentiment amongst buyers and sellers, and perhaps only time will tell.
On a more local level, reports from our team show that activity in the last week was somewhat subdued, with Mother’s Day a key focus for many over the weekend. With signs of pent-up demand, however, we do expect to see increased sales activity during May.
A particularly encouraging sign is the wave of new buyers entering the market, evidenced by an upsurge in enquiries to our office. Typically, new buyers need to view a selection of properties before making a decision and so our team is looking forward to negotiating sales over the coming weeks.
One of the interesting sales in the last week was for a brand new apartment in West Perth, which sold to an astute first homebuyer, who secured the property after noticing it in the newspaper and viewing only a handful of properties. This confident buyer is part of growing band of first home buyers who are choosing inner-city properties that are close to employment and lifestyle opportunities rather than traditional house and land packages on the outskirts of town.
For followers of the real estate market, one of the key questions will be how various budget initiatives affect sentiment amongst buyers and sellers, and perhaps only time will tell.
On a more local level, reports from our team show that activity in the last week was somewhat subdued, with Mother’s Day a key focus for many over the weekend. With signs of pent-up demand, however, we do expect to see increased sales activity during May.
A particularly encouraging sign is the wave of new buyers entering the market, evidenced by an upsurge in enquiries to our office. Typically, new buyers need to view a selection of properties before making a decision and so our team is looking forward to negotiating sales over the coming weeks.
One of the interesting sales in the last week was for a brand new apartment in West Perth, which sold to an astute first homebuyer, who secured the property after noticing it in the newspaper and viewing only a handful of properties. This confident buyer is part of growing band of first home buyers who are choosing inner-city properties that are close to employment and lifestyle opportunities rather than traditional house and land packages on the outskirts of town.
Tuesday, May 3, 2011
COMPETITION IS THE KEY
REIWA´s latest vacancy data has revealed that the vacancy rate across Perth was 50% higher a year ago than it is today. Demand for some rental homes in Perth is now rising to such a level that renters are prepared to pay above the listed rental price to secure a property.
But even with such strong tenant demand, landlords can´t afford to cut corners with the marketing of their property. Uploading the property to real estate websites is of course extremely important but it needs to be supported with print advertising and signboards.
Professional photography is also critical given that the majority of potential tenants will be viewing your property online and making their shortlist based on photos alone.
Overall, the key to achieving the best possible rental price is to attract the highest number of potential tenants and put them in competition with one another. A skilled agent will be able to make the most of this situation and negotiate strongly on your behalf.
Competition doesn´t need to be a group of 30 people waiting at the front of your property for a viewing. A recent executive property we leased went for above the asking price with only two people interested. As the leasing team say ‘it only takes two to tango!´.
But even with such strong tenant demand, landlords can´t afford to cut corners with the marketing of their property. Uploading the property to real estate websites is of course extremely important but it needs to be supported with print advertising and signboards.
Professional photography is also critical given that the majority of potential tenants will be viewing your property online and making their shortlist based on photos alone.
Overall, the key to achieving the best possible rental price is to attract the highest number of potential tenants and put them in competition with one another. A skilled agent will be able to make the most of this situation and negotiate strongly on your behalf.
Competition doesn´t need to be a group of 30 people waiting at the front of your property for a viewing. A recent executive property we leased went for above the asking price with only two people interested. As the leasing team say ‘it only takes two to tango!´.
PENT-UP DEMAND COULD CATCH SELLERS UNAWARE
Although monitoring by the Real Estate Institute of Western Australia (REIWA) shows that the number of properties for sale across Perth remains above the long term average, there are hints that stock levels are dropping in certain areas. This is either due to a boost in the number of sales or from owners taking their properties off the market, perhaps placing them onto the rental market where vacancies have been low for some time.
Sales executives at Caporn Young are reporting a shortage of stock in key areas within the Western Suburbs and in and around Fremantle, which is causing frustration amongst buyers unable to find what they are looking for.
There are also signs that there is considerable pent-up demand from buyers, both homebuyers and investors, who have been previously dormant because of uncertainty in the market. Now that the interest rate environment has stabilised and the growth prospects for the market are positive if not unspectacular, many are now preparing to make a purchase.
The shortage in rental accommodation across the market, which seems to be getting more severe, may see disgruntled renters become buyers, further adding to the demand.
Caporn Young is expecting a busy period ahead and given the demand for quality property and the company´s reducing stock levels, there is currently a perfect opportunity for sellers to bring their properties to the market.
Sales executives at Caporn Young are reporting a shortage of stock in key areas within the Western Suburbs and in and around Fremantle, which is causing frustration amongst buyers unable to find what they are looking for.
There are also signs that there is considerable pent-up demand from buyers, both homebuyers and investors, who have been previously dormant because of uncertainty in the market. Now that the interest rate environment has stabilised and the growth prospects for the market are positive if not unspectacular, many are now preparing to make a purchase.
The shortage in rental accommodation across the market, which seems to be getting more severe, may see disgruntled renters become buyers, further adding to the demand.
Caporn Young is expecting a busy period ahead and given the demand for quality property and the company´s reducing stock levels, there is currently a perfect opportunity for sellers to bring their properties to the market.
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