Hi all,
As we begin to enjoy the beautiful weather, we can finally say that spring is on its way. With all that is going on in the world right now, I can’t help but think how blessed we are here in Adelaide.
I wanted to reach out and give you some insight as to what I have been researching, pondering and exploring.
1 in 10 Australians are now millionaires
According to global investment bank Credit Suisse’s Wealth Report 1 in 10 Australians are now millionaires, with Real Estate being the primary driver of that wealth, largely due to property values appreciating 400% over the last 25 years.
Buyer sentiment has fallen; buyer activity remains strong
A recent NAB poll uncovered home buyer sentiment has fallen by 11% largely due to soaring house prices. However, home buying activity remains strong, with NAB reporting for the week ending August 8th, the strongest activity in over six months. On the ground we have seen incredibly strong demand as buyers accept the new benchmark in prices in the hope of securing a piece of the Australian dream.
Yield’s tumble as investors look for equity
A pub in Melbourne sold on a yield return of 3.8%, a week earlier a hotel in Brisbane sold on a yield return of 4%. This is inline with a growing trend I am seeing in the property market, with investors so eager to purchase properties even at record low yields, given the low interest rates.
Supply of properties can’t keep up with demand
A headline caught my attention this week, “Even homes with issues fly in a lockdown with little stock”, although referring to a house in Sydney. I look to Adelaide’s supply and demand issues, there is currently 26.5% less properties on the market compared to this time last year. At the same time, days on market continues to decline. These factors are signs that property values will continue to rise moving forward.
Please feel free to give me feedback. What point is your favourite? What do you want more or less of? Any other suggestions? please let me know.
Have a great day and a wonderful weekend.
I hope you and yours stay safe and well.
Regards,
Yianni Garbas
Property Consultant | Auctioneer
BComm(Commerce) | Chartered Accountant
Yianni Garbas 