SQM research released data this week indicating strong falls in the number of residential property listings nationally. Sydney and Melbourne led this, however Brisbane also had a significant drop in listings of 9.7% for the month. Whilst SQM research partly attributed the drop to seasonal factors, the year-on-year reduction in listings has also been significant, with Brisbane residential listings dropping 6.9% over the year. This is only slightly less in percentage terms than the reduction in listings over the past year in Sydney (8.7%).
Whilst reductions in listings in Sydney and Melbourne in particular is primarily attributed to potential vendors holding out for higher prices, concerns over being able to find a new property are also a factor. Recent research by LJ Hooker conducted in the first quarter of 2017 indicated that of the 60% of people that obtained an appraisal but did not subsequently list their property, the primary reason was lack of choice in stock on the market for sale (35%). A significant number of respondents indicated that the costs of buying a new property were too high (26%), while 18% of respondents indicated that the cost of selling was too high.
Whatever the reason for a reduction in residential listings, this reduction can result in greater competition for those properties that are listed, adding to the potential for further increases in prices.
Whether it is the family home or an investment property, when considering a sale it is important to review a wide range of factors such as development potential, pre-sale upgrade costs in relation to potential resale return, as well as the impact of other considerations such as Capital Gains Tax.
Vesi Developments recently completed pre-sale preliminary feasibility reviews of properties in West End, and Camp Hill, in Brisbane. A full range of options were investigated including development/subdivision for sale, and renovation options prior to sale, which enabled our clients to make a more informed decision on their way forward. If we can assist you please do not hesitate to contact us.
The information contained in this and other news items is obtained from a range of sources, which we validate wherever possible. The information contained in news items may also change over time from its initial publication date and you should check that the information remains current. Before making any investment decisions you should seek the advice of qualified professionals, and consider your own particular circumstances.