The property outlook for December
- Written by Tim McKibbin
December is soon upon us and with it comes a slight lift in the number of people attending auctions and registering to bid. While buyer reluctance remains, these are positive signs in the current context.
Vendors considering a sale next year need to start talking to agents now. The next few weeks can be spent planning to ensure the ideal campaign is ready to go in early 2023.
Interestingly, among buyers who are registering, it’s often those who have been looking for a comparatively shorter time who are being successful. This could be a sign that those who have been searching for longer are judging the market on the past.
Auctioneers also report a trend of one-buyer auctions that result in sales. Agents which act transparently with buyers impart a greater sense of mutual trust and are negotiating with single buyers on auction day with success.
Generally, we’re also seeing vendors be more accepting of the market and believing the sooner they sell, the better the result.
There has been some speculation recently about the reasons investors have been sitting idle. Obviously, higher mortgage repayments on account of rising interest rates, and the likelihood of further rate rises, are having an impact.
But it’s more than this. While investors are hesitating to make purchases, existing landlords are exiting the market.
REINSW is investigating why this is the case through targeted research, as anecdotal evidence from agents across the state suggests that the imposts faced by landlords are making an investment in residential property a comparatively less attractive proposition than, say, shares or even commercial property.
Seeking to elevate protections for tenants at the expense of freedom for landlords is having a counterproductive impact. Placing further limitations on the way investors can manage their investment undermines the health of the rental market.
Fewer homes to rent in an environment in which demand for rental accommodation is increasing is compounding an already dire problem.
