Under the Australian real estate lockdown, the background of record soaring!

Under the Australian real estate lockdown, the background of record soaring!

Recently, in Australia, there are reports about the rise in real estate prices on a daily basis, but on September 14, 2021, the Australian Bureau of Statistics released an index showing the transition of real estate prices until June this year. I did.

According to the report, the three-month average rise in real estate prices across Australia by June 2021 was 6.7%, the record rise since 2003.

The top three cities with particularly high prices are

 

1st place Canberra 8.2%

2nd place Sydney 8.1% 

3rd place Hobert 6.3%

Experts analyze that the background is that there are few properties on the market due to the lockdown period and that it is due to the lowest bank borrowing rate in history.

It seems that the price of the property is rising due to the balance between supply and demand.

To support this fact, the time it takes for a property to sell is shortened, and at the auction, the percentage of properties that sell is very high at 86%.

Didn’t anyone expect the real estate to skyrocket during the lockdown of the Corona?

In fact, I’ve heard a lot of cases recently traded at prices that far exceeded the selling price that the landlord expected.

Real estate developers are also beginning to react sensitively, and prices for off-the-plan properties (property that hasn’t stood yet) have also announced increases.

 

Lockdowns are said to be eased in mid-October, but experts expect the market to remain relieved, albeit a little calm.

 

Sydney further lockdown

The number of people infected with Covid-19 has been increasing, and finally, strict lockdown regulations have been enforced throughout Sydney, which prohibits going out of the 5km area.

Police patrols are likely to be further strengthened, and offenders will be fined up to $ 5,000 (about 400,000 yen in Japanese yen).

When I returned to Japan and was free to travel abroad, it seemed like a dream.

You will be reminded of how valuable “ordinary everyday life” is.

 

The weather in Sydney has been good here.

Please be careful about your health

 

Real Estate Circumstances-After the First Half (January-June 2021)

Australia is currently experiencing a real estate boom, with prices rising by an average of 12.4% across all five major cities earlier this year.

Since the lockdown last year (2020), Sydney has grown by 16.4%, Melbourne by 10% and Brisbane by 12%.

  1. Current Real Estate Median Prices

Sydney: House $ 910,500 Units $ 650,000

Melbourne: House $ 730,000 Unit $ 565,000

Brisbane: House $ 559,400 Units $ 389,000

Adelaide: House $ 5000,00 Units $ 360,000

Perth: House $ 500,00 Units $ 430,000

Hobart: House $ 655,150 Units $ 5000,00

Darwin: House $ 580,000 Units $ 420,000

Canberra: House $ 824,000 Unit $ 470,000

 

  1. Seller market market

One of the reasons for the price increase is that the number of properties on the market is small, and it is now a complete seller market.

It takes an average of 26 days to sell a house in Sydney, 37 days in a unit, 31 and 41 days in Melbourne, 36 and 51 days in Brisbane, and 34 and 37 days in Canberra.

In addition, the discount rate is 1.5% -3.2% in each region, and it is happening that the price sells at almost the advertisement price or the price goes up more (especially in the case of auction).

 

  1. Rental market situation

Due to the closed border with foreign countries, there are no students, tourists, working holiday makers, etc. entering the country, so in the inner city area of ​​Sydney and Melbourne, rents are lower than before the Covid pandemic, and Sydney The rate of decrease is 18.2%, and that of Melbourne is 27.7%.

However, the impact was small in Brisbane and Perth, with a 3% decrease in Brisbane and a 2.1% increase in Perth.

 

Nonetheless, unit purchase prices are rising in Sydney and Melbourne, with first-home buyers, home buyers and investors buying.

 

Major banks and experts predict that real estate prices will rise by 20-30% in this boom and then slow down over the next few years.

 

Given the real estate situation in this seller’s market, sufficient research and expert advice is very important, which makes it necessary to determine what kind of property to buy in which area. Will come.

 

Sydney lockdown

The lockdown for Sydney has been extended until July 31st.

Although it can’t be helped, it’s painful to be restricted.

Taking a walk to solve the lack of exercise, hoping that the day will come when it will be released soon and you can live safely.

Exercise is permitted even during lockdown, so you can refresh your body and soul.

 

Today is a warm day with a maximum temperature of about 19 degrees Celsius even in winter. The blue sky spreads.

Soaking in nature will heal you very much.

 

Change your mood on a beach walk in Sydney

I tend to stay home because of the lockdown from the other day, so I took a walk on the beach.

Looking at the blue sea and sky, I feel refreshed by the sea breeze.

Australia is reminded that it is a wonderful environment where you can live side by side with nature.

I hope the day will come when I can return to normal life as soon as possible.

 

Real Estate Market – Future Forecast

Real estate market a few years later

What will the current real estate market look like in the next few years?

Experts predict that real estate prices may have risen by a final 25-30% compared to the beginning of the real estate boom.

By that time, the economy hit by Covid-19 is recovering, employment and salaries will rise, and interest rates on home loans will rise accordingly.

However, salary growth has not caught up with inflation, and real estate prices have shown double-digit growth over the last few years, making real estate purchases out of reach for most people in the future. Isn’t it? Is concerned.

 

However, even under such circumstances, real estate can be purchased.

For that purpose, the important point is “where” and “what” property to purchase “how much”.

 

So where should we consider buying real estate?

  1. Location!

Needless to say, this is an area with good transportation, shopping, supermarkets, schools, and public facilities in the park. In particular, there is a tendency to prefer train lines, but even along buses, there is potential for development if there is nature next to a large suburb, beaches, national parks, etc., and large development is expected in the future. There is.

 

  1. Established area, stable area

The area where homeowners have already lived for 20-40 years has a low ratio of home loans to their own homes, making it a stable area for those who can afford it to some extent economically. These areas may be further developed in the future.

 

  1. Area where people who want to step up live

In the area where people who have a little extra money and want to upgrade their homes move in, such people gather and the quality of the area improves. As a result, good tenants will gather and the real estate value is expected to rise in the future.

This is not a so-called “luxury suburb”, but a relatively old suburb that has already been established or is a newly created city in the surrounding area, and we will take steps in consideration of its convenience and future potential. It is thought to be a suburb where people who want to gather.

 

And what kind of property should I buy?

It is more valuable as a real estate investment to aim at an area where the value of real estate will increase in the future, rather than expecting temporary rent income.

These can be single-family homes, townhouses, or units in family-friendly areas. Suburbs and properties that people with stable income and those who can afford to choose as tenants are expected to increase the value of the area and the value of real estate in the future.

 

It is necessary to purchase real estate for as long as possible, looking ahead 20 to 30 years.

Will I be able to continue living in this property when I retire in the future? Or can you earn enough income as an investment property? Or is it a property worth leaving for your child?

Of course, when you first purchase your own home, you may not go according to the plan due to budget, commuting, children’s school, etc., but after that, when considering the second and third investment properties Please refer to these for.

 

* We will assist you in purchasing real estate as a buyer’s agent according to your budget and request. Please contact us for more information.

 

In the middle of lockdown

Sydney is in the middle of a lockdown. But Sydney’s blue sky and Harbor Bridge are still alive. But the traffic is much less than usual.

Lockdown is extended for another week. It can’t be helped, but I hope that every day without restrictions will come soon.

 

The market for properties for sale in Sydney is strong even during lockdown.

 

Current status of the real estate market

The Australian real estate market is currently experiencing the fastest-growing real estate boom in the last two decades in this corona wreck.

There are several reasons for this.

 

  1. Low interest rate home loan

While interest rates are low, more and more people are thinking of buying at this opportunity, such as renting to their own home, upgrading their current home, or moving from the city to a larger suburban home. These people have aroused the psychological situation of “FOMO-Fear Of Missing Out” and “I don’t want to miss this opportunity,” leading to further price increases.

 

  1. Increase consumer confidence by improving economic and employment conditions and stabilizing corona conditions

These situations are accelerating demand.

 

  1. Demand> Supply

The current situation is that properties for sale are bought as soon as they are advertised, and supply is not keeping up with demand.

The fact that the supply is 24% less than the average for the past five years is also a situation that fuels consumer sentiment.

 

  1. Buyers who have been watching for the past 2-3 years are actively entering the market

Buyers who have been watching for the past few years due to concerns about the economic situation, elections in 2019, corona in 2020, etc. are actively thinking about purchasing, combined with low interest rates. The “FOMO-Fear Of Missing Out” psychological situation is accelerating this.

 

  1. “Change of consciousness” to the area where Corona lives

Corona forced people to change their lifestyles, which changed people’s definition and consciousness of their homes.

In the past, the main point was the distance from the place of work, but now it is common to work from home due to the corona sickness, and as a result, there are “parks”, “beach”, and “beach” around the home. It has become an important point to say that “there is a shopping center” and “there is a coffee shop”, which is a convenient and relaxing environment for daily life, “within a 20-minute walk”.

From next year, when the corona situation is expected to settle down, when a new work style that eliminates the need for work every sunrise will be built, people will be asked “where do you live?” And “what kind of property do you live in?” A change in consciousness will lead to further relocation and new purchases.

 

[Investment properties in Canberra] Introduction of recommended properties

Last time I told you that the property in Canberra is hot, but now the demand for rental properties is increasing, and it seems that as many as 30 people may come to the inspection of one preview. Among them, there are situations where people who want to rent somehow pay higher than the actual rent. Supply is not keeping up with demand and it is a very good time to buy as an investment property.

 

Many properties are currently being developed and built in Canberra.

In addition to the properties introduced last time, there are other recommended properties that have been completed and are under construction, such as the following.

 

1) Property scheduled to be completed in the second half of 2021

  • A sophisticated luxury apartment located in the heart of Canberra.
  • From the VIP room on the 8th floor exclusively for residents, you can see the cityscape of Canberra and the greenery of the nearest park.
  • It has a spa, sauna, and pool facilities comparable to those of a resort hotel.
  • 7% rent guarantee (1 year, property under $ 500,000)
  • 5% down payment is OK
  • Stamp duty at the time of property purchase is free because the developer pays it (3 bedrooms only)
  • From $ 447,900 per bedroom (¥ 35.73 million)
  • An example of the floor plan below ($ 467,900, 1 bedroom, 1 bathroom, 1 parking lot = 54sqm room + 8sqm balcony)
  • * AU $ 1 = JY79.64 As of January 28, 2021

 

2) Completed property

  • From 2 bedrooms $ 474,900 (37.82 million yen) (2 bedrooms, 2 bathrooms, 1 parking lot = 74sqm room + 8sqm balcony)
  •  A lush environment surrounding Lake Ginninderra
  • The resident-only VIP room on the 14th floor has a lounge, kitchen and dining room, and the rooftop terrace overlooks Black Mountain and the lake.
  • Approximately 25 minutes by bus to Canberra’s city center (2 minutes on foot to the bus stop) Light rail will pass in the future
  • 5 minutes walk to a large shopping center (about 200 stores), 8 minutes walk to the University of Canberra, 5 minutes drive to the hospital
  • * AU $ 1 = JY79.64 As of January 28, 2021

 

3) Completed property

  • From $ 340,900 per bedroom (1 bedroom, 1 bathroom, 1 parking lot = 58sqm room + 8sqm balcony)
  • Another apartment in the same location as No. 2 above
  • * AU $ 1 = JY79.64 As of January 28, 2021

 

In addition to this, there are many properties that can be introduced in other areas.

 

If you have any other questions regarding the purchase of the property, please feel free to contact us.

 

[Investment properties in Canberra] Investment properties that can be purchased for less than 27 million yen (as of January 18, 2021, 79.82 yen / $ 1 Australian dollar)

Canberra, the capital of Australia, is said to be a city built halfway between Sydney and Melbourne, where they want to have their capital.

 

Canberra, which was created to build the capital, is an orderly and beautiful city with wide roads and a comfortable place to live.

Many people living in Canberra live for some purpose. These are government-related work, studying at university, etc., and the standard of living and education is also high.

 

The Canberra is currently undergoing 234 Australian dollar urban developments and is expected to grow further in the future.

 

Even with this corona disaster, Canberra is relatively unaffected and the economy is stable.

In a recent report Canberra;

  • The highest rent city in Australia
  • Vacancy rate is almost “0” -Rather, there are not enough properties
  • Even under the corona situation, there is little damage due to the high employment rate of government relations and civil servants.
  • People’s employment rate and purchasing power are high
  • Quality life High income, rich nature, city life

It has become.

In fact, there are cases where dozens of people are rushing to preview rental properties these days, and some people want to rent even if they are more expensive than the rentals offered.

 

Canberra is said to be a government-run city, and is protected in a good way. When people other than citizens and permanent residents purchase from overseas in order to revitalize real estate. Compared to other cities, it is very easy to buy, as there is no need for special purchase stamp duty (additional tax) for foreigners. It is also more affordable than Sydney and Melbourne.

 

There are numerous offers and discounts from major developers currently developing in Canberra.

  • 7% rental guarantee (1-2 years) depending on the property
  • Affordable from $ 320,000
  • An environment with high education and cultural standards, as well as leisure elements
  • There is no additional tax on stamp duty on foreigners.
  • It is a very stable and special market with a large proportion of people engaged in the Australian government + educational institutions, and its population growth is constantly on the rise.
  • Canberra’s largest developer. It has invested more than 100 billion yen in Canberra and has a share of more than 50%.
  • Australia has the highest average income and the lowest unemployment rate, so good tenants are expected
  • High yield can be expected because the vacancy rate is lower than anywhere else

 

1)

  • From $ 318,000 per bedroom (52sqm, no parking)
  • 1 year, 7% rent guarantee (property under $ 500,000) or $ 25,000 refund (after signing the contract)
  • City of Gungahlin in northern Canbella
  • 3 minutes to the city center, 500 meters to the light rail, 18 minutes to the center of Canberra and 17 minutes to the airport.
  • A green area surrounded by nature and parks

 

2)

  • From $ 363,900 per bedroom (50sqm + parking)
  • 2 years, 7% rent guarantee (property under $ 500,000), with blinds
  • Newly developed area around Lake Ginninderra
  • University of Canberra and a large shopping center in the suburbs
  • Located in Belconnen, one of Canberra’s largest cities
  • Various transportation access to central Canberra

 

3)

  • From $ 335,900 per bedroom (50sqm + parking)
  • 1 year, 7% rent guarantee (property under $ 500,000) or $ 25,000 refund (after signing the contract)
  • A natural area surrounded by mountains and lakes, located on the Greenway in southern Canberra
  • 5 minutes walk to the shopping center, 15 minutes drive to Canberra Airport, 20 minutes drive to the center of Canberra, 2 hours drive to the ski slopes
  • Resort-style facilities (rooftop terrace, indoor and outdoor pool, spa)

 

This favorable Canberra is currently “at the time of purchase”.

There are many other properties that can be introduced in other areas of Canberra.

 

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