September Insights with John Cunningham.
Click to watch or read the full transcript below.
– “Hi, it’s John Cunningham. Welcome to September edition of insights.
Our monthly deep dive in what’s driving the property market on the Northern beach. We always love our numbers. So let’s get into some numbers to start with. With 40 sales under our belt. In the last 30 days, it’s been a great start to spring. We’ve also seen over 395 sales actually transact on the Northern Beaches. So we’re starting to get closer to that 400 plus territory, which is what we need to get the market really moving in a very tangible way. We’ve actually got 47 properties currently for sale, and we bought on 45 new listings to the month. So it’s showing our 28 days on market has been pretty standard now for the last couple of months, which is a great sign moving forward that we’re in a very strong, vital marketplace.
We had some very interesting insights from buyers over the last month.
One really important factor is experts have been active. We’re starting to see a lot of online presence and some activity, and actually buying properties with a longterm proposition in place. First home buyers are back in active as well. Lots of activity in the home unit marketplace in that space. And again, first home buyers are starting to get their act together, seeing a far better lineup of pre-approved loans. So people are in a position where they can act quite rapidly.
Investors are the first taking those tentative steps now, back into the marketplace.
The caution from COVID-19 particularly on a macro economic sense has kept a lot of people away, but they’re back. And we understand why, the actual local investor marketplace is very strong. And what’s interesting about all those numbers, this is adding to buy demand. We’ve seen 2000 buyers come through our open homes in the last 30 days alone. So that’s, again, indications that things are strong and the spring marketplace, which is traditionally where the new stock comes onto play. Hasn’t happened as quickly as we thought it might. So we’re still in that very tight supply marketplace, but still very high demand. We expect to hopefully see that stock improve with the school holidays or back. It’d be something we’ll have to wait and see how that plays out.
We’ve seen a significant shift in the last few weeks in relation to vacancy rates as well. We’re seeing them drop significantly. We’re down to 12 days on market on average now. We’ve seen rents increase significantly as well, and particularly on houses, houses that are presented well and really at their best in terms of quality are attracting the quality tenants. So the return on investment for investors right now is looking really, really sharp.
Low interest rates.
We’re seeing interest rates at an all time low, probably an important part of that is the fact that we’re not gonna see that change according to the reserve bank and all the pundits in that space for about two years. So we’ve got stability. I’ve got certainty in that space. So for investors right now, it’s almost a lot of properties are looking at being neutrally geared. And that hasn’t happened in a long, long time. So I would encourage anyone that’s thinking about that space to talk to our investment managers and get something happening because right now, great time to get involved.
A massive increase in inquiry has come from the Eastern Suburbs.
Traditionally it’s always been the lower North Shore and inner West, but the Eastern Suburbs and even the upper North Shore have increased quite dramatically, particularly in the lower Northern Beaches. Now that’s an indication that there’s a lot of people wanting to make that sea change move that greener pastures or that tree change movers, a lot of people call it, to the Northern Beaches. Our lifestyle marketplace, and the whole impacts of COVID-19 on the way people live in the lifestyle they want. We’ve seen that happen quite dramatically. And it’s only taken a couple of months to see the impacts, which means we’re increasing demand but we’re not increasing supply and therein lies our problem…
The perpetual supply demand conundrum.
You probably notice our Sold On the Quiet signs popping up everywhere. Well, it’s no wonder when we look at the last month 40 sales, there’s been 12 properties Sold On the Quiet. So we’re seeing that increase. It’s now heading over that 25% Mark and heading towards 30%, which is very interesting. It’s a very effective method of sale particularly as a first step process in a one or two step process in the sale. But when you get that level of engagement quick, because of the amount of very, very well engaged buyers in the marketplace, it’s no wonder so many people are going that direction. But it’s a nuanced approach. It’s, we’re making sure that we don’t just take it for granted. We have to get the best possible result in that timeframe. And that’s why, again, you’re seeing Sold On the Quiet out there, quite prolifically. We’re looking forward for the rest of the Spring.
Home is a Feeling.
We’re calling it to phrase in our blog called Home is a Feeling. And we’re really getting that sense from the marketplace. That that’s where it’s all at. Particularly at the effects of COVID-19, we’re seeing people take a different view of their home. It’s a no longer a space where you just sleep and eat. And those sorts of things, it’s a space where it actually has to be a multiple use space. And that’s where the changes are occurring. People are actually designing different spaces. There’s a lot of renovations going on, to factor in so many different ways that we live in our home. So it’s a fascinating space right now. We’ve covered that off in our blog, which you’ll find on the Cunningham’s website, lots of great information there and stay tuned for our spring report, which will be coming out in the next few weeks, which will really dive a bit deeper into what’s going on in your Suburb, on the Northern Beaches. Thanks for tuning in, talk to you next month.”