Economic Upswing

The economy seems to be back in full swing, albeit our International Borders are still closed. Unemployment figures were down to 5.6% earlier this month and even though job keeper has ended, there seems to be plenty of confidence throughout the economy.

There is no doubt that the Morrison Government were banking on a Real Estate led recovery. The only concern now is that Real Estate prices are rising and would be best described as a “runaway train”. The property prices in NSW, Victoria and QLD have increased by 10% in the last 6 months.All of our key economic indicators are showing that Australians have never been so determined to buy a property. Australian Capital Cities will foresee unprecedented growth for Torrens Title Properties (House and Land).

We are expecting an influx of business migration, once our Borders have reopened, mainly coming from South East Asia, USA, UK and Europe. With the pandemic still running rampant, in most Countries around the world, Australia has become a favourite destination for the affluent to migrate.

The Rental Market, throughout Sydney’s metropolitan area, is recovering slowly but steadily. In most cases, rents are slowly getting back to normal, yet in suburbs bordering Universities, they are still struggling. We hope that the Universities will be open to International Students, from 2022, and we will start to see that market recover.

Investors, who are entering into the Real Estate market, could once achieve a 4 to 5% return on their investment. These returns have now been slashed to 2.5% on average.
This is a result of property prices increasing, a slower Rental Market (in the last 12 months) and much lower interest rates.

Prime Coastal areas across Sydney’s East and the Northern Beaches are still creating a large penned up demand for Rental Properties. Recently, the properties we manage in Coogee, Bondi and Bronte have had as many as a dozen applications on any one property. This will slow down as we get into the Winter Months.