The current direction of the housing market appears to challenge traditional trends and logic, experts said during a recent AltX webinar.
JPM Valuers Director Jason Matigian said prices reached in mid-2020 no longer seemed relevant under current market conditions.
"We recently did an appraisal in Manly. The house next door sold for $ 4.1 million in May or June 2020, so we thought about $ 4 million. for the property, which was similar. Eventually, the property sold for $ 6.3 million, "Mr. Matigian said.
"We see this across the east coast from Sydney and even once we go to the middle and outer rings." "
Strong regional market gains
Mr. Matigian said this was apparent in other areas as well.
In Queensland, for example, some stagnant markets have recently started showing signs of life due to changing buyer preferences.
“A coastal way of life has become extremely important. There has been a significant increase in some coastal towns. We've seen these lifestyle properties really go up in value, ”he said.
According to his estimates, changing sea and tree trends have resulted in annual growth of around 25% in regional markets.
This was consistent with the latest figures from CoreLogic, which showed a 27.1% growth in the median regional home price in August to $ 493,925.
The annual growth of the regional median price has been faster than the average annual growth of 20.9% recorded in the capital cities.
"We definitely see these regional markets moving," said Mr. Matigian.
"They are coming out of an extremely low base, trading at the same price for over 10 years."
The Engines of Exceptional Price Growth
Ray White director Gavin Rubinstein said that aside from the low rate environment and lack of supply, the new appreciation for space amid lockdowns is helping at current market conditions.
"A lot of people now place a lot more importance on having and wanting space, so with a lack of lifestyle assets – something with view or near the beach where you can really improve your lifestyle – the number of people is paying is insane, ”Mr. Rubinstein said.
Preston Rowe Paterson's Country Manager Neal Ellis shares the same sentiments, saying the emphasis on lifestyle has changed market behavior.
"If you had asked me 20 years ago where to invest, I would never have said to go to the outer areas and see what you can buy," said M . Ellis.
"I would have suggested buying something in a smaller town for the same price and you get better capital growth." But I'm not sure that applies anymore. "
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