Join me as I discuss current issues and innovations relating to finance and property and how these may affect you, the property investor and developer.
Each episode features a special guest, we have a casual discussion in my guest’s field of expertise while enjoying one of my favourite pastimes, which is Gourmet French cooking at home in my kitchen.
Episode 3 - September 2021
Special Guest John Pucak, Senior Sales Agent at HT Wills Real Estate Hurstville
Topic of Interest The State of the Residential Property Market
Who it may affect Property Investors (purchasers and vendors) and Property Developers
This episode’s dish Entrecôte Bercy, Pommes Frits (Beef Fillet with Bercy Sauce and Pont Neuf Potatoes)
topic overview
An experienced and active real estate agency, with its finger firmly on the market’s pulse, is a critical reference point for:
property valuers seeking current market comparable evidence
property owners / investors seeking to determine whether to buy or sell
property developers seeking assistance in:
- putting together a development site
- pre-sales / pre-lease of proposed project
- management of retained stock
- determining what to build to best meet the local market.
The past 12-18 months have seen a strong surge in demand-driven activity particular from owner-occupiers of residential properties while the investor market has stagnated and even retracted since the onset of the covid19.
Torrens titled residential properties have increased in value by up to 27%, according to the chief economist of one of the big-4 banks, increasing the divide between rich and poor and throwing off kilter the relationship between house prices and wages.
The major drivers have been the ready availability of inexpensive capital coupled with increases in personal net wealth (savings) due to covid19 lockdowns, and covid19 induced lifestyle changes (read: owner-occupiers’ desire for work-from-home and extended living space).
While the commercial property market has held up well despite vacancies and tenant closures from prolonged lockdowns, and the industrial market continues to strengthen mainly driven by logistics, it is the continuation of unprecedented residential property price growth that concerns the government.
New ASIC & APRA macroprudential measures designed to temper the property market have recently been implemented and there’re more to come following the lead from the New Zealand government.
As Australia wriggles its way out of the covid19 pandemic, what may we expect in 2022 with the imminent return of international students and workers, international tourists, ex-pats who have been stuck overseas; will:
Torrens titled residential properties continue to become more and more out-of-reach for the average Australian especially as wages growth continues to stagnate?
this “affordability factor”, and to a lesser degree the Strata Building Bond and Inspections Scheme, narrow the gap between Torrens and strata titled residences?
the federal government authorities’ macroprudential measures retard or inhibit inflation in this asset class? What are some of the measures that have been already imposed and to be imposed?
In this episode of In JP’s Kitchen, the general property market is examined and market drivers are identified and a “finger on the pulse” insight into the changing behaviour of residential property market participants is suggested.