So much for a pandemic induced meltdown in property prices…
I have not seen one hint of a slowdown as yet. Quite the contrary – momentum seems to be building and I’m getting more bullish by the day.
As the saying goes, ‘one swallow does not make a summer’. However, when you’ve seen about 27 swallows in the last 10 days it’s probably time to crack out the SPF.
We’ve had six sales already since inspections recommenced. Every single one of them has sold for a better price (and sooner) than expected. I’d even say these were ‘strong’ prices.
As a team we had 90 separate private buyer inspections on Saturday. Four of our properties had over 20 groups through.
These numbers would be solid even back in the day of unregulated open inspections, when you had 70% tyre kickers and neighbours coming through.
In this new COVID era of strictly scheduled private inspections 20+ groups is a far more impressive turnout when you consider that all of these buyer are pre-qualified, ready to go, and have made the effort to book an inspection.
Several of our properties have had over 40 enquiries in the first seven days on market.
And what’s more interesting is that as the stock continues to build, the enquiry seems to build with it. It’s almost like more listings are bringing out more buyers.
I guess all that chat about ‘pent up demand’ was true.
The big unknown is whether this is a singular wave of buyer activity and demand, which will soon dissipate, or whether it’s a sustained swell that will continue well into next year?
No one knows.
There are counteracting forces at play.
On the one hand we’re seeing unprecedented stimulus and intervention – loose fiscal and monetary policy, Government grants, relaxed lending criteria and the cheapest money ever.
On the other hand we’re seeing our first proper recession in decades, rising unemployment, negative net immigration and a systemic step-change in the way we will do business in the future.
If we look around the world, money is actually flowing into real estate and hard assets as people scramble for a safer long term bet for their wealth than the rapidly-printed (and soon to be devalued?) dollar.
Granted, it’s complicated.
But right now, on the streets of Stonnignton, all signs are pointing to a strong finish to 2020.
Many people are sick of their current digs. Many people want to upgrade, downgrade, sea change, tree change, or enter the market for the first time. And many of these people are also flush with cash and can easily service ever bigger mortgages.
That’s the demand side of things. The supply side is still tight.
New Off Market / Pre Market Opportunities
Two of the four off market opportunities from last week have already sold! Best to get in quickly.
740 Orrong Road, Toorak – A fabulous, oversized (120sqm internal) mid-century apartment on the fourth floor with beautiful northern light and aspects – 2 bed, 1 bath, 1 car – unrenovated but liveable condition with plenty of scope to improve, in one of the coolest architectural (c1959) buildings in Toorak. ($800,000 – 880,000)
Grosvenor Street, South Yarra – A very spacious freestanding contemporary town residence – 3 bed, 3 bath, 2 car – with a huge roof terrace with city views, basement / home theatre and excellent storage ($1,600,000 – 1,700,000)
Cliff Street, South Yarra – A fully renovated freestanding two storey house opposite Grosvenor Street Park – 3 bed, 2.5 bath, 2 car (Suitable for buyers $2m+)
If you’d like some more information please reply to this email.
Thanks for reading. David Sciola.
Get new blog posts delivered directly to your inbox.