The gradual lifting of COVID-19 restrictions and favorable market conditions are likely to keep potential buyers in good spirits, stimulating activity in the housing market, according to the latest Savills study.
Paul Craig, CEO of Savills Australia and New Zealand, said buyer sentiment is likely to increase as confidence returns to the markets.
About three in four property buyers worldwide are likely to continue with their plans to purchase a property. Meanwhile, about 90% of suppliers still have sales plans. Craig said this remains true in Australia as inventory levels begin to rise.
"The market is breaking away from an extremely low listing base, so even if some say that higher stock levels in the market will create great bargain opportunities, I believe we are witnessing just a return to normal levels, which should see us come back to a balanced market, "he said.
Read also: Post-pandemic guide for owners
Chris Orr, director of residential at Savills Australia, said that while declining rental yields and capital values ??could signal pessimism among market players, factors such as low interest rates and government incentives make it ideal for buyers to enter the market.
"This has made it even more beneficial to buy in many cases than pre-COVID for investors and those wishing to expand or simply enter the market," he said.
Cath Hart, Executive Director of the Housing Industry Association, said that announcing government support programs, particularly the HomeBuilder program, would help reverse the drop in new home sales, improve confidence market and boost lending.
"Data on housing finance justifies the moment behind the introduction of stimulus programs, including the HomeBuilding program and the Building Bonus Grant, to support the residential construction sector," said she declared.
Sales of new homes fell to their lowest level ever in March, before falling further in April and May. In addition, the number of project cancellations rose to 26%, exceeding the 17% average recorded after the global financial crisis.
Main suburbs:
Scarborough
,
queens park
,
Coburg North
,
Alexandria
,
Whyalla
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in a property, it is important to make sure that you not only have the lowest rate available that you can get, but
Just fill in a few details here below and we will then arrange a local mortgage broker to contact you and determine the features or types of loans that are right for you. Needs. We will even help you with the paperwork. In addition, an appointment is free.
We value your privacy and treat all of your information seriously – you can check
our privacy policy here
