Update from the Sales Department
The sales market has picked up significantly in the past 8-12 months. Sean Bennett, Sales Manager of Mayo Real Estate, reported that “the good quality stock & the high end properties are attracting large numbers through opens and achieving excellent prices. One eastern sububs home [he] recently sold reached more than a quarter of a million dollars over the reserve price on the day. The price achieved for this particular property attracted a large amount of interest from a number of agents across Adelaide and highlighted the promising values being established at this end of the market”.
This recent surge in activity at the top end of the market is giving vendors and purchasers a new confidence in local real estate. Stock across Adelaide has remained relatively thin compared with the usual spring-summer numbers but this has helped push competition amongst buyers and ultimately driven the impressive results we are seeing.
At the other end of the market, units and townhouses are taking a little longer to move but with the right advice and careful pricing, good results are also being achieved.
Rental Market Update
Following a very slow 2016, the rental scene has taken a turn for the better and things for investors are looking up. Late last year, a number of houses & units sat on the market for extended periods of time, well beyond the usual vacancy average. Nearly all properties that were placed on the market in Adelaide between April 2016 and December 2016 had to endure a decrease in rental rate in order to successfully re-let and vacancy crept as high as 4.4% in around September.
However, with the New Year, we have seen a much needed shift. An increase in demand and a fresh understanding of market values from our landlords has led to a much faster turnaround, bringing the time-on-market average back to around 3-4 weeks. Whilst numbers through opens have still not quite restored to the norm and rents have not yet replenished from the hit in 2016, we appear to be entering a more ‘normal’ market and our figures show that the vacancy rate has dropped back to approx. 2.5%.
It is worth noting though, that January through to around April is historically the busiest period on the rental scene and with winter just around the corner, we can only hope that this trend continues.