The Reserve Bank has left official interest rates on hold in May for a 19th-consecutive meeting keeping them at historic record lows.
Prices of apartments that fall into the category of Student Accommodation, Serviced Apartments and many Studio Apartments (SSS) are driven more so by interest rates than any other market factor.
The lower the interest rate the higher the likely sale price for SSS properties.
We know it is inevitable that interest rates will soon start to rise and hence the prices of SSS properties will start to fall.
Once rates rise, it’s unlikely we’ll see interest rates this low again in this generation, hence today may be the peak of the market for the sale of SSS apartments.
Have you considered selling your SSS property, or do you need an updated appraisal as we head into the End of Financial Year?
We have the tools available and the clients waiting to secure the next opportunity so if you have considered selling or need an update for your tax, please call our office 03 9664 8100 or complete your details below:
Research by property advisory firm Urbis showed just seven per cent of new apartment sales last year were for units of three bedrooms or more, yet the demand is much higher.
Interesting, as this is one segment of the market that is being overlooked by many of new developments that are under construction, or that have been built over the past decade. Many of these properties currently available will not meet the needs of its residents.
“It is very clear that buyers do have a love affair with inner-city living however their wants are not being meet by what developers are currently offering”.
Buyers are screaming out for properties that are spacious, not everyone wants a sky-high apartment. This is resulting in many potential buyers abandoning their search for inner-city properties in favor of city edge dwellings.
This demand of unit living is working in the favor of properties like yours. Over the past 24 months we have seen, when these properties do become available, more buyers are coming forward, eager for the opportunity to purchase them!.
At present the market is strong for spacious or three bedroom, family sized apartments and this could be a great opportunity to take advantage of this current situation, as the savey investor knows, “good times don’t last” “make hay whist the sun shines”!
Over the past 12 months we have seen a increase of approx. 10-12% in the median sales price of three bedroom units in the Southbank area. This current shortage of stock has had upwards pressure on sales prices.
Feel free to contact me for a confidential discussion, if you would like to know what your property’s potential could be in today’s current marketww.
I look forward to hearing from you.
Adam Merkur – Southbank Area Specialist
M:0497 966 344