In March, the supercharged real estate market sees prices continuing to surge in regional centres and major cities. Record low volumes in all major centres, low-interest rates and wages growth, falling unemployment and growing confidence have led to the perfect real-estate storm.
After an initial downturn, all capital cities are bouncing back, resulting in record-high prices since January. Regional prices nationally have risen by 6.5 per cent.
Many would-be buyers now realise that renting may be their only option, and, as investors prefer to put their money into property instead of the bank, the boom is expected to continue. Market forecasts are for house prices to increase between 5 and 10 per cent for each of the next two years.
CBDs were rendered virtual ghost towns following the Covid-19 outbreak in 2020, and commercial real estate suffered. Occupancy rates and rental income dropped, with many businesses abandoning premises and leases favouring work-from-home arrangements for their staff. Now, as life returns to a new normal, city centres are evolving, incorporating smaller, dynamic businesses prepared to take advantage of failing commercial rents and prime office space. PwC reports that 12 per cent of national economic activity comes from CBDs and expects to see locations bounce-back in 2021.
Download and read the full Market Essentials – March 2021 Report.