Thursday, January 14, 2010

We're smack bang, back in a seller's market

The economy is on the mend, employment numbers are up and the corporate giants are regaining ground... which means employee transfers are happening again and investors are back!

Only 2 weeks into 2010 and we’re already seeing market conditions strengthen. Web visits from around the globe to spiked last weekend, coinciding with the New Year real estate launch, and are up a healthy 13.2% from this time last year.

‘Cashed up’ professionals who have relocated from overseas and interstate are entering the local property scene, fuelling competition amongst buyers for quality homes. The top end is well positioned to be a big winner thanks to these new buyers, with the sale of a stunning estate at Grove Street, Unley Park a prime example. Settling this past week for $4.019million the property was snatched up within a matter of days by a Chinese family new to Adelaide.

Keen investors who have been waiting for the First Home Buyer hype to die down are back in the mix and setting their sights on properties in Adelaide’s CBD. Over the past weeks our sales team has negotiated contracts for city apartments with investors from Dubai, Malaysia, Perth and Sydney.

According to our leasing team, these savvy landlords are looking in the right spot. Properties priced correctly throughout the inner city suburbs, CBD and across the metropolitan coast are currently being secured following the first open, with around 50% going to tenants who have transferred from interstate. As an anticipated rush from overseas students is expected in late January/early February, competition for accommodation in these areas will only increase in-turn pushing up weekly rents. This will likely provide balance for investors as interest rates continue to climb.

As for our ToopExec rental properties, these are currently letting to local families. A shortage of good quality homes for sale is seeing vendor’s sell quickly, then needing to rent while not compromising on quality, as they track down their ideal home.

In a nutshell... we’re smack bang, back in a seller’s market. Vendors, price your homes well and make the most of these buyers!

Anthony Toop, Managing Director.

© Toop Real Estate Group

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