After what was a tumultuous and challenging year, we now want to take the opportunity to look ahead at what investors can expect from the property market in 2021?
We have seen capital cities such as Sydney struggle, and experience high vacancy rates throughout the last few months. The inner-city rental market is extremely reliant on people moving either from overseas for study or work, as well as people moving interstate. Due to COVID-19, these numbers have greatly decreased, creating a large drop in demand and pricing.
However in regional centres and suburbs within driving distance to major cities, the demand for rental properties has increased. Wollongong has seen large numbers of enquiries and groups inspecting rentals, as well as an increase in the number of applications provided on available homes. Vacancy rates in Wollongong are sitting at a low 0.9%, down from 2.1% at the same time last year. The tight rental market is likely to place upward pressure on prices, which we expect to see increase in the future.
With more people working from home and relocating to areas such as Wollongong, we will continue to see an increase in demand for homes to purchase as well as rent. In 2020 we saw large numbers of first home buyers in the market - taking advantage of the pause on stamp duty and other government grants. And while investor lending has been low we expect that property will become increasingly attractive in 2021.
The types of properties investors purchase are likely to be far different from the typical stock they have targeted in the past, such as one-bedroom and two-bedroom, inner-city apartments. Investors are more likely to be looking in established and new housing areas as well as regional markets where demand is lifting. Combined with the historic low-interest rates, it will be interesting to see which areas take off as investor hot spots.
Overall 2021 is looking to be a good year for the property market, for both sales and rentals. If you'd like to discuss your property plans or just have a chat about the market call us on 4228 0888 or send us an email at firstname.lastname@example.org