Yesterday, Michelle May, founder of Michelle May Buyers Agents, shared the first half of the list of property market trends she expects to play out in 2021; today, she’s back to finish the job.
TREND: Quality apartments will sell well
While prices have gone up for houses by as much as 20% in some suburbs, largely driven by lack of supply, this is not the case in the apartment market.
"There is lots of apartment stock on the market and there are less apartment ‘buyers’ out there," May said.
"This means that, if you are looking to buy an apartment as a first home buyer, downsizer, empty nester or an investor, now is the right time to buy. As long as you do your due diligence and only look for quality stock, you’ll find there are some really good opportunities.
"Buyers are shying away from newer developments and turning to red brick, older apartments due to the integrity of the build of the apartment blocks. To that end though, this means there’s a slight shortage in this part of the apartment market because they’re in high demand.
"There are plenty of options to buy ‘newer’ apartments. If you are interested in such properties, you must ensure you get a full understanding of the quality of the build and the commitment from the strata committee and owners to maintain and run the complex."
TREND: 2021 is the year for investors
The former trend leads directly to the next, as May sees it.
"As more apartment stock comes on the market, seasoned investors will continue to shop; off loading the sub performers and upgrading to better quality investments to add to their portfolios," she explained.
"The interest rates are well and truly palatable and many first time investors are keen to jump in and reap the benefits. With houses out of the question in major cities for many mum and dad investors units and their new price tags will be appealing."
TREND: More parents will be helping their children
As property prices rise, young Aussies looking to get onto the property ladder will require more money saved for a deposit.
"The last couple of years of property price growth had seen many first-time buyers lament that they would never be able to save what they needed to get their foot in the door. In many cases, these youngsters were often turning to the bank of Mum and Dad to help them get over the line," May said.
"Whilst 2021 may see our property prices hold tight, parents will see this as the ideal time to help their children into the market. The First Home Loan Deposit Scheme has been extended to another 10,000 buyers from October allowing some first home owners an opportunity to enter the market with just 5% down and be LMI exempt – a deal that is appealing to the kids and parents alike, many whom float their children a portion of their deposit to get them started," she finished.