The market for residential real estate is booming, with the number of apartments on the market up nearly 50 per cent year on year, according to a new report by real estate research firm Corcoran.
While the trend has been in place for a few years, it has taken on a new momentum recently, with many new developments popping up in Melbourne, Sydney and Brisbane.
What are the best times to rent?
Corcorans analysis of real estate listings shows the best years to rent are when the market is in its most stable phase.
“The key to being successful is not buying and then selling as many properties as you can, but buying and selling a mix of properties that are in a very good state of development,” Corcoranc said.
What are some factors that influence the market?
Corco’s report looked at the properties that had been listed in Melbourne and found the key factors influencing the market were: average house price growth per capita, number of vacancies per month, median house price and number of sales per month.
“While it is true that the growth rate in house prices has been relatively stable over the past few years and there are some positive signs in terms of the economy, the recent increase in vacancy rates in the region have been very concerning,” Corco chief economist Ben Ainslie said.
“For example, vacancy rates increased from 9.1 per cent in June to 11.4 per cent last month.”
This is a sign that the market has slowed down, which could be a sign of a correction.
“There are a number of factors that are at play in determining a buyer’s appetite for a particular property, whether it’s an existing home or a new house that has been built recently.””
There is no single answer to all these factors,” Cor Corcoranco’s Mr Ainsiell said.
“There are a number of factors that are at play in determining a buyer’s appetite for a particular property, whether it’s an existing home or a new house that has been built recently.”
Read moreA few factors that can influence the price of a property include the average house value, number and percentage of vacant units, home price growth and number and percent of sales.
“We find that the higher the vacancy rate is, the higher it is that the average home price can rise, so if the average price is higher, the buyer will buy,” Mr Akinsiell told ABC Radio Melbourne.
“The same applies if the number and the percentage of units that are vacant are higher than the average number and/or percentage of sales are higher, then the buyer may be more likely to buy the property.”
A higher proportion of sales is also a sign it is a good place to build a home and this is another factor that is important to consider.
“But there is a caveat.
Mr Ainsi said that a property with a lot of vacancies could be the most attractive for a prospective buyer because there is less competition.”
In a sense, if you have a lot vacant units it may be harder to find a buyer, because there are more available units,” Mr Heysiell added.
The research found the most desirable properties were ones with lots of vacancies.
Who should look at the real estate market?
Corcoranc’s Mr Hey says a “good mix” of properties can make a real estate transaction attractive, while there are still many variables involved in the decision to buy.”
If you are a young person looking for a house, or you are in an area where there are a lot vacancies, then you may find it harder to get a deal.””
A buyer who has a high home value may be willing to pay a higher price than someone who is not as well off, because they have seen the properties they want and know what they want to get out of them.”
If you are a young person looking for a house, or you are in an area where there are a lot vacancies, then you may find it harder to get a deal.