A New Precedent Emerges
The good news for property owners is that sales are up! But, for the first time, we are experiencing a market where rental properties are not dictating sales.
Historically, when rental prices increase, sales prices do the same shortly after. But, for the first time in our principal agent’s 21 years of property experience, Trish says, “I have never seen a property market where sales and rentals are divided in movement”.
Because of changes to bank lending laws during Covid-19, investors are having a tough time getting loans for property. Currently, we have a first home buyers market coupled with low interest rates. It’s a great time for first home buyers to enter the market, but it also means there is a change in the way the market has generally run.
With a flood of first home buyers entering the market, the supply cannot match, and so sale prices are up. Separately to this, rentals are a plenty as well, with no change to prices and in many cases, a decrease.
Recently, properties that SydneyLinks had for sale since the beginning of Covid-19 without movement, recently sold within weeks of vaccine announcements and restrictions easing. Where we once had a couple of buyers at best, we now have a list of interested buyers a competition to negotiate price once again.
Unfortunately for rental properties there may still be a slow to increase prices in the market. Tenants have become aware of the price drops and will continue to benefit from this until the market picks up again. Currently, SydneyLinks has 46 furnished units for lease, which means renters have the pick of the bunch.