Australian Property – A Turn Is Coming, But Not Just Yet

Experts are baffled. Australia is seeing a sustained rise in property prices and the market remains active despite predictions to the contrary. In the time of a pandemic and its related economic and social challenges, it seems almost incongruous that the property market continues to boom.

There are, of course, various reasons for the continued growth in the market, the most notable of which is the currently lower interest rates. The caveat is, though, that the growth seen last month has been somewhat lower than in June (1.6% and 1.9% respectively). This slowing down does not yet indicate a turn in the market, but it does hint that the warnings of a turn may yet come to pass, albeit later than anticipated.

Those looking to still reap a reward in this boom by selling their property would be well advised to enter the market soon, then, as since demand is currently outstripping supply, sellers are more likely to get their asking price. But there is a catch. Buyers have become increasingly savvy to the value of property. It’s necessary, therefore, that sellers ensure that their properties are valued at the correct rate for the area and condition that they are in.

Some owners might feel the need to undertake significant renovations, like painting, to increase their property value and gain a higher selling price. However, drastic measures are not always necessary, and ‘over-renovation’ may even hinder rather than aid a sale. Sometimes, all buyers need is to see a freshly painted, tidy interior and a low-maintenance buy. It’s more important, then, that sellers focus on balancing renovation costs with what they can most realistically anticipate getting for a property. Those best able to do so could still make a good profit before the market finally turns.