News & Insights
September has traditionally been a quieter period for real estate due to the school holidays and the AFL Grand Final weekend. However, this September defied conventional expectations with a strong market performance. Even though many Victorians tend to travel during these school holidays, more so than at any other time of the year, both the volume of property listings and the achieved sales results were well above average.
Property owners took advantage of this time, keenly preparing their homes for Christmas sales, aiming to attract buyers before year-end. There was a marked increase in demand from expatriates, largely attributed to the current weaker Australian Dollar, making investments more attractive. In a month typically marked by quieter moments, the property sector was surprisingly active, highlighting the market’s inherent ability to flourish and adjust.
The imminent Land Tax changes set to take effect from 1 January 2024 have triggered a noticeable increase in owners opting to sell their investment properties. This has inadvertently caused a dip in the number of available properties on the market, manifesting in low vacancy rates.
However, the demand has not waned, evident in our property management’s recent statistics: with 1,292 attendees at property viewings and a substantial 439 applications received within the past month. Despite the constrained stock, our efficient team successfully facilitated the leasing of 100 properties, a testament to our unwavering commitment to cater to the high demand and serve our clients effectively.
In the past month, there has been a noticeable surge in demand amongst buyers seeking properties priced over $3 million, primarily those aiming to downsize or secure larger-than-average apartments for their future city base.
This heightened interest stems from growing concerns about rising construction costs and the firsthand observation of escalating land prices. As a result, savvy buyers are taking proactive steps now to make their purchases before costs further escalate.
Throughout September, the mortgage market showed continued resilience. We observed that many of Marshall White Finance’s First Home and New Home clients made the shift, converting from Pre-Approvals to Purchases. It’s worth noting that despite rising interest rates, many Australian households have largely been resilient to the higher rates, while new purchasers have maintained momentum despite a large theoretical decrease in their purchasing power.
On the other hand, there was a noticeable slowing of refinancing activities. This change can be attributed to tighter interest rate margins and smaller differences in rates amongst banks. Additionally, the ‘Cash Back’ incentives offered to clients have now been cut.
This past month showcased our team’s commitment to active client engagement and reinforcing partnerships. A total of 457 congratulatory Electronic Direct Mail (EDM) messages were dispatched, acknowledging and celebrating significant milestones with our valued clients. Further solidifying our dedication to client relations, we proactively communicated with 700 clients via calls and text messages, not only maintaining the rapport but also offering our specialised trade services to cater to their needs.
On the collaboration front, we facilitated 80 referrals within the trades and insurance sectors, emphasising our intention to nurture and expand our industry relationships. Summing up the month, there’s a clear indication of intensified activity, marked by high client interactions and our unwavering commitment to service excellence.