Opportunity Knocks for Northern Beaches Property Market
2020 has been a crazy year so far. You don’t need us to tell you why. In my 25+ years in real estate, I haven’t seen anything like it, and talking to my Dad (Mal Davey), with 50+ years in it, he hasn’t either.
So what is so crazy about the real estate market in Perth? Well the normal Demand/Supply relationship and the resulting effect on price has gone out the window. The demand in both sales and rentals is like nothing I have seen. Emma Guthrie sold a house in Holbeck Street in Doubleview this month at the first Home Open, which isn’t remarkable for the team but there were 81 groups through that home open. 81!!! We don’t keep records on this, but I’m betting it is one.
Shantell Kupsch is almost as busy in her rental home opens, with groups of 40+ not uncommon. It wasn’t this busy during the boom in 2006/2007!
So, prices must be going north right? Wrong!! The median selling price in Perth has not changed! Even more surprising is that the rental market across Perth has dropped – but the vacancy rate is at historical lows! If you are an investor wanting to rent your property – do it now, contact one of our team from Investor Services – Shantell or Kylie and do it soon! Why would you do this if prices are dropping? Well read on…
So why are the trends so unusual?
The rental market can be somewhat explained by the State of Emergency in WA and the correlating legislation that prevents landlords increasing their rent. This has definitely slowed the price increases and there are also many rent reductions that have been negotiated to help Tenants in need. However, if your rental property is in the Northern Beaches suburbs and east of this to Wanneroo Road, there is massive demand and you can more than likely increase your rent. We’re not sure how long this honeymoon period will last, but “our” patch seems to be an oasis in a sea of rental pain.
The sales condundrum is more difficult to pin point, but once again, we are not seeing prices drop in the Northern Beaches and in fact are seeing the opposite – great prices being achieved for our Sellers and massive demand. We are bucking the trend. If you are thinking of selling in the next 6 – 12 months DO IT NOW is our clear advice.
So where is the market going?
It would be easy to cop out on predicting the future with so much uncertainty, but we’ll put our best foot forward. We’re in a period of change. High demand in the Northern Beaches is likely to remain for the rest of the year, but early next year could be very different for sales. I am expecting residential sale prices to drop next year, before bouncing back. However, I don’t think we’ll see that in rentals. I suspect that the rental prices will surge for some time yet.
If you are thinking of investing in real estate, the next 6 – 12 months could present some opportunity that we haven’t seen in decades.