Sales and anecdotal evidence is strongly suggesting that first home buyers are coming back to off the plan market, as it starts to represent great value compared to the strong established market.
Developments across the country, particularly those in Melbourne, Sydney and Queensland, are gearing up for one of their busiest periods from the launch of spring in the lead up to Christmas.
Last December saw the pent up sales demand released, as face-to-face appointments became available again, and 2021 feels like deja vu, with the added driver that international borders may be open by Christmas, or not soon after.
That will bring in the next wave of buyers, the local and overseas investor, who have been sitting on their hands for the most of 2021 due to the lack of immigration to Australia.
Now with the expectation of international students, expats returning to Australia, and more flexible travel between states, experts believe sales across Australia’s East Coast will jump during the final quarter of 2021.
Noorden Property director David Lamond says there are parallels between the lighter restrictions experienced in Victoria at the end of last year and what we expect to unfold this year.
“There was pent up demand last year when Melbourne came out of lockdown in December. We’ve survived economic collapse, and real estate as an asset class has been one of the safest bets over the last 18 months,” Lamond says.
“Despite the ongoing lockdowns, Australia has still come out of the pandemic as one of the safest countries to handle the virus.”
Lamond says that’s only going to increase heading in to summer, with the recent announcement that borders are likely to open potentially as early as Christmas.
Ash Bramich, the sales and marketing manager at Pace Development Group, says that while Covid has affected many financially, there is still so many buyers who are either not affected or wanting to get on with their life, which can include investing, first home buying, upsizing and downsizing.
“There is no doubt the market continues to surprise us,” Bramich says.
“Many experts forget that rising home equity, a strong share market and historically low rates has created significant wealth for many Australians. This, combined with FOMO and covid influencing factors, is fuelling demand in many housing markets.”
Bramich says a wide variety of demographics represent the off the plan market, with sales and anecdotal evidence strongly suggesting that first home buyers are coming back to the off the plan arena, as it starts to represent great value compared to the strong established market.
He says downsizers from an ageing population, as well as lifestyle/Covid factors, are driving strong demand for spacious owner occupier size apartments, preferably in boutique buildings with strong lifestyle/community and rich amenity.
“Many are using left over proceeds and driving price gains in holiday hot spots, especially in Queensland and warmer climate markets.”
Growland CEO Ronald Chan says the housing market is definitely warming up as we approach the release from lockdown.
“Our enquiries for Victoria Square and Neue Grand increased by 30\ per cent over the last two weeks,” Chan noted.
“Buyers expressed strong interest to inspect our display suite once one-on-one inspection is allowed.”