Interest rates up to 3.85% and some Off-The-Plan Buyers nervous.
Interest rates up to 3.85% and Off-The-Plan Buyers nervous.
With the RBA raising the interest rate to 3.85% last Tuesday, plus the issues within the building industry such as building company collapses, and construction supply delays causing grief, all property Buyers are being cautious, and in particular the Off-The-Plan Buyers are very nervous.
The combination of construction problems and the rental crisis is steering buyers to purchase established homes.
The number of new home approvals is now trending to its lowest level in more than 10 years. In February, 12,661 homes were approved, this is a 30% drop in 12 months.
The demand for off-the-plan listings in Australia has fallen by 60%, but there has been an increase in demand for off-the-plan properties that offer “Multi-Tenant-Housing” and “National Disability Insurance Scheme (NDIS) housing”.
There are obviously big adjustments on the way within the housing industry, and this might turn out to be a good thing in the long term.
The opportunity for growth and stability with healthy rental yields in Dual Occupancy Homes has always been a winner, we have always specialised in them, and it looks like people are finally waking up to the advantages.