Demand for apartments in 2020?
In Australia, the last 12 months have been a rollercoaster for real estate markets. The record-low interest rate environment persists, with the RBA in its March meeting cutting the cash rate by another 0.25 per cent, and the Sydney and Melbourne markets are seeing a fast recovery. Despite other risks including the coronavirus outbreak, the issue arises — how is Australia's apartment market fare going to be in 2020? We're looking at recent developments around the country to see if Australia's apartment market will continue to work for the rest of the year.
There is no denying that living in an apartment is staying here. One in every 10 Australians live in an apartment, according to Domain, and the number of people living in high-rise apartment buildings has almost quadrupled in recent times.
What are people looking for in a flat?
If you're a tenant in search of your next home, or a buyer, people want homes close to amenities. You need to make sure that your property is close to shopping areas, education, trains and buses and lifestyle facilities like restaurants and cafes. Those factors are necessary to attract tenants, but when it comes to selling your investment property it's also significant.
Where would you put your investments into an apartment?
When it comes to renting an apartment some places are safer than others. If you want the property to be in a desirable location close to amenities, you do need to look into the area's supply of apartments so that you don't invest in a neighbourhood that's about to experience excess supply. That will affect your rent and capital growth.
How are apartments all over Australia performing?
One of apartment cities with the fastest-growing development is Hobart. According to Domain, apartment prices in the last three years have risen by more than 50 per cent to a median price of $395,715. Hobart apartments usually rent $460 a week, which is equivalent to a 4.1 a cent rate.
Across New South Wales, Newcastle, Wollongong and Canberra are the areas where prices for apartments are expected to rise.
Canberra is another quiet achiever too. As the capital of Australia, there is an abundance of government workers and students all seeking places to call home, resulting in low vacancy rates. Since June 2018 Canberra's median unit price has risen to $448,737 year-on-year by 1.9 per cent.
Houses usually surpass apartments in the long term but they are more costly to purchase. This makes apartments an outstanding property for first purchase or entrance into the property market. However, as always, you need to do your homework and make sure that you make a sound investment decision.
For further information about real estate in this area, contact No Bull Real Estate, your most reliable and friendly real estate agents in Newcastle & Lake Macquarie. Buying, selling, leasing for residential, commercial, industrial property, contact your local expert to buy, sell or lease today on 49552624 or https://www.nobullrealestate.com.au