Market Report 2020 October 20

Market Report 2020 October

Market Update

Apartment Values Are Rising.....I'm Almost Certain

Market Update - October 2020

October 2020

The housing market has taken off and the hysteria in the media is starting to have a spin-off effect on apartments...I think.

Market Report 2020 October 20

The housing market has taken off and the hysteria in the media is starting to have a spin-off effect on apartments...I think.

That's right we are in no man's land right now but I'm getting a feeling and that feeling is a good one.

Here’s what’s happening... and sorry for this report being two weeks late - I have been waiting for certainty which hasn't come but I'm running with it.

The banks are still holding apartment lending restrictions to 20% (the reason our market hasn't taken off) but housing pressure is, though it's early days, starting to have an effect. You see, it's the lower end housing market that's under pressure which parallels the apartment market and some buyers are getting priced out by 100's of thousands over expected values.

This, with the media, is starting to make apartments more attractive and not just for first home buyers but investors too as housing returns are dropping.

My Prediction:

Short term.

The sales results are a bit behind my hunch but they're coming as not all buyers are constrained by deposit or equity and we are seeing increased inquiry. I see the rest of the year now being a claw-back of the lost ground over the last 6 months which is great news.

(sorry not under 40m2 due to rents and the banks 50% restrictions but that's another story.)

 Long term.

What gets me excited is I see a housing boom of 10% in the next 6 months and if that continues further it will result in investors having more equity negating the LVR (Loan to Value Ratio) restrictions and the apartment market following suit.*

The Asterisk.

The housing market is very cleverly being used by the reserve bank to increase consumer confidence. But for how long? The more the housing market rises the stronger the pressure is to put the breaks back on.

Let's hope they take their time.

And as always.

Whats My Apartment Worth?

Now each apartment has a different value. To find out the approximate new value just email Andrew for a figure of what it's really worth in today's market.

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Market Report 2020 October