Raine & Horne is encouraging investors and landlords to capitalise on the upcoming traditional selling season in spring to maximise investment returns.
Fresh data from the real estate group revealed a considerable uptick in attendance at open for inspections (OFIs), with the number of groups attending OFIs in July up by approximately 10% than in autumn and was 37% higher when compared to the summer months.
Data from Raine & Horne reveals a notable uptick in attendance at open for inspections (OFIs). In July, the number of groups attending OFIs was approximately 10% higher than in the autumn and an impressive 37% higher when compared to the summer months.
Maria Milillo (pictured above left), head of property management at Raine & Horne, said property inspections become more appealing for buyers during milder spring months.
“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,” Milillo said. “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 decent sales results due to reduced competition.”
Milillo said fewer listings become especially significant for landlords looking to sell considering the backdrop of sustained property price hikes since the start of the year. Notably, CoreLogic’s data revealed a 4.1% increase in the Australian real estate market since hitting a low point in February.
Raine & Horne’s data showed that for those investors seeking to broaden their portfolios, there was a roughly 15% increase in appraisals in July compared to April, which according to Milillo, suggested that more properties will likely hit the market as the weather warms up.
“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,” she said.
“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.”
John Katergarakis (pictured above right), head of property management at Raine & Horne Green Square and Raine & Horne Bexley/Beverly Hills, said that spring presents a favourable opportunity for real estate investment in Eastern Sydney.
As the warmer months loom, Katergarakis is expecting a significant decrease in vacancy rates for high-quality rental properties. He believed this transition provides potential investors with a prime opportunity to enter the market.
Katergarakis highlighted, in particular, the demand for two-bedroom, two-bathroom apartments which amounted to roughly $1 million, located in either Waterloo or Bexley.
“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,” he said. “The presence of a second bathroom enables flat mates to have separate living arrangements, and these apartments also appeal to young families starting out.
“Furthermore, these premium apartments are currently being rented out for approximately $900 to $1,000 per week, translating to an impressive yield of almost 5%. Given interest rates are projected to fall in 2024, these popular properties are expected to become even more enticing options for investors this spring.”
In Adelaide, Gwen Levesque, co-principal at Raine & Horne Gawler/Munno Para, said there was a growing investor phenomenon.
“Despite many still attending open for inspections (OFIs), investors are increasingly purchasing properties in suburbs like Andrews Farm, Munno Para West, and Gawler without the necessity of a physical property visit,” Levesque said. “The convenience of virtual tours and online resources has allowed investors to explore properties from the comfort of their own homes.”
She said there are several factors why the forthcoming spring season holds promise for investors.
“With interest rates currently stable, it presents a favourable time for investors to consider acquiring properties,” Levesque said. “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.”
Use the comment section below to tell us how you felt about this.
