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Could Christmas be the best time of year to buy a property?

15 Dec, 2021

Could Christmas be the best time of year to buy a property?

Experts foresee an especially busy Christmas in the Australian property market as investors take advantage of an increase in stock coming onto the market later in the year.

Christmas and real estate deals

As Christmas and the holiday season get closer, we often see most prospective property buyers are toning down their search to have a stress-free holiday season. The professional side of managing personal finance slows down and the family side rises.

However, it is probably the less competition and more favourable property values during December and January that makes it an exciting time to buy property.

“Often we see property buying clients losing a bit of interest at this time of year, as thoughts turn to summer holidays or more festive pursuits than kicking off with a property search,” said Pete Wargent, co-founder of BuyersBuyers.

“But with new listings rising, some buyers are sensing a window of opportunity to buy ahead of the international borders reopening in full in 2022”

Moreover, now that lockdowns have disrupted the seasonal flow of the property market, experts are predicting a busy Christmas as investors capitalise on an increase in stock coming onto the market later in the year and grab the best real estate deals.

How long does the window with less competition stay open?

On December 13, Federal Health Minister Greg Hunt said that the delayed border reopening for students and skilled labour would go ahead on 15 December. From this date, students and migrants will be able to return to Australia without needing to apply for a travel exemption.

As a result, BuyersBuyers CEO Doron Peleg advised that this less competitive opportunity won’t last long.

“There is a brief period of time before record low overseas arrivals numbers [will be] replaced by a new wave of arrivals,” he noted.

“The permanent immigration cap may even be lifted to above 200,000 in due course to alleviate Australia’s skills shortage. Logically, buyers should have less competition and potentially more choice before international travel picks up again in earnest,” Mr Peleg said.

Agreeing with Mr Peleg, he commented that if an influx of supply does coincide with a drop off in demand, the moment would be brief.

“Immigration has been high in Australia for the past 15 years, and it will be again relatively soon. But for a brief time, there may be an opportunity to snare a bargain purchase,” he said.

He also said, “Until relatively recently, the idea of monthly or daily housing price reporting was relatively obscure for most people. However, it’s important to remember that due to the transaction costs, property tends to work best if you plan to hold for the asset over a reasonable time horizon.”

In addition, at its final meeting for the year on Tuesday, the Reserve Bank of Australia board kept the interest rates at a record low of 0.1% for the 13th consecutive month. However, according to Domain experts, the tide may soon turn, with the RBA signalling it wants the official cash rate to eventually climb up to 2.5 per cent.

While the RBA holds rates, Christmas and the first two months of 2022 will be an ideal time to lock in a low home loans rate.

What About Property Supply?

According to the latest Domain report, the supply of stock is increasing, more properties are listed in the market which gives buyers more choice to find their dream home.

“As Covid-19 lockdowns and restrictions come to an end and the sustained high prices appeal to vendors, sellers are beginning to re-engage with the market, increasing supply which in turn offers greater choices for buyers,” said Nicola Powell, a Senior Research Analyst at Domain

At the same time, there are usually more homes to choose from during the spring and summer months as opposed to the winter months, which commonly makes these months the best time to buy a property in Australia.

So if you are looking to buy this holiday season, you would have plenty of home sales options with fewer competitors, making it super beneficial for you.

What does this holiday season mean for first home buyers?

Generally, from the start of December onwards, a decrease in the number of people present in open home inspections can be observed. This slowdown in activity would mean that there is an opportunity to bag the best real estate with room for bargaining the asking price with fewer buyers.

“Housing market activity experiences a seasonal slowdown post-spring in the run-up to Christmas,” PropTrack economist Eleanor Creagh said.

“It’s been an exceptional year – in property and otherwise – but buyers will soon be distracted by the holidays. The economy has bounced back to life with vigour and with restrictions in major cities and southern states easing, many are ready to enjoy their new-found freedoms.”

With many people heading out of capital cities for their holidays, first home buyers will have more chance & choice to enter the market and secure their first home.  This holiday season could be an optimal time to buy your first property!

Watching and waiting might not be the best solution!

In the past year, property prices have risen about 20%, according to the latest REA report, while in the regions they’re now 25% higher.

The predictions about how the property markets would perform might do in 2022 has ramped up in recent months, with the consensus being price growth of house sales will slow next year.

  • ANZ economists are forecasting national property prices to raise a healthy 6 per cent in 2022.
  • NAB forecasts a 5% increase in property prices in 2022, following a record year-over-year increase in 2021 – the highest since 1989.
  • According to Westpac’s recent forecast, property prices are expected to rise by 8% in 2022, with the majority of that growth occurring in the first half of the year, before entering a modest correction phase in 2023.
  • Commonwealth Bank has upgraded its property price forecast and predicts a 10 per cent increase for the next year.

So although Australia’s “red hot” property market has started to cool, experts are expecting more growth into 2022.

Demand for units are bouncing back

Experts suggest that the annual trend for national unit rents has shifted to the positive, while vacancy rates in big cities have stopped growing and are anticipated to fall in the months ahead.

This trend is a direct result of the international borders opening announcement for today, 15th December, and the number of international students and migrants coming back to the market means high demand for rental properties and conveniently located accommodation, as has already happened in London, New York and other cities.

At the same time, buyers are seeing greater value in units due to house price affordability constraints, and growing investor activity is supporting unit prices.

“Both the lower entry point and higher yield profile may be an attractive option for investors as they become more active in the housing market,” CoreLogic head of research Tim Lawless says.

This is a great opportunity for property investors to get on board as the growing population looking for rentals is going to drastically increase.

Buying a Studio Apartment for an Investment

One important thing to note is that young professionals and international students prefer living in low maintenance properties like studio or 1 bedroom apartments. Normally, we tend to see strong demand for apartments that are located in prime locations, close proximity to public transport, universities and everyday amenities.

“We’re now seeing an increase in the number of investors looking for investment opportunities in high-growth suburbs such as Kogarah, Hurstville and so on,” said Will Wehbe, Sales Director of St Trinity Property Group.

Will_Wehbe_Profile_Pic_o8wtcz

Will Wehbe, Sales Director of St Trinity Property Group.

“Interest in apartments has been steadily increasing which is lining up with international borders opening. In the last 2 months alone, we have seen a surge in the number of investors looking for studios and 1-bed apartments”.

“Kogarah Central is one of our most popular projects for studio and 1 bedroom apartments. It is also a very active suburb with a myriad of restaurants, shops and services around the corner, attracting students to its social life.” Said Mr Wehbe.

Apart from convenient location and ease of commuting, Kogarah Central is located within walking distance of some of the renowned educational institutions such as TAFE NSW St George College.

With prices starting from only $395,000 – substantially cheaper than those in the inner west and further in towards the city, Kogarah Central presents a wonderful investment opportunity and a good purchase for all home buyers.

With lockdowns drifting further into the past, Sydneysiders are keen to holiday outside the city this year. So with less competition over Christmas, it could be the best time to enter the property market!

Before the international borders reopen in full swing in 2022 and demand for rental properties is rising, now is the best time to take this opportunity and invest ahead.

Give St Trinity a call today at (02) 9099 3412 to find out all about the best Christmas deals in the property market or click on the link below!

AUSTRALIA PRIVACY STATEMENT

Last updated: August 2020

INTRODUCTION

St Trinity Property Group and its affiliated entities, representatives, agents and related companies (collectively referred to as ST TRINITY PROPERTY GROUP) respect the privacy and security of your Personal Information, as defined below, and comply with the requirements of the Australian Privacy Principles under the Privacy Act 1988 (Cth).

This Privacy Policy explains in general terms how St Trinity Property Group handles your Personal Information. However, it does not apply to St Trinity Property Group’s employee records to the extent they are handled by any of our companies that is or was the employer of that employee in relation to the employee’s current or former employment. Such employee records are generally exempt from the Act and will be dealt with as permitted by law.

You may be able to deal with us without identifying yourself (i.e. anonymously or by using a pseudonym) in certain circumstances. If you wish to do so, please contact us to find out if this is practicable in your circumstances. However, if you do not provide us with the Personal Information we have requested, we may not be able to complete or fulfil the purpose for which we collect the information, including providing our services. By visiting our websites, using any of our services or otherwise providing us with your Personal Information (or authorising it to be provided to us by someone else), you agree to your Personal Information being collected and handled as set out in this Privacy Policy.

WHAT PERSONAL INFORMATION DO WE COLLECT AND HOLD?

Under the Act Personal Information is defined as information or an opinion about an identified individual, or an individual that is reasonably identifiable, in whatever form and regardless of whether it is true or not (Personal Information). The Act also defines a subset of Personal Information as sensitive information (for example health records, racial or ethnic origin, religious beliefs, criminal records).

The types of Personal Information we collect and hold will depend on the circumstances of collection and on the type of service we are providing. For example, when we are engaged to sell a property, we may collect and hold Personal Information from both the seller and potential buyers such as name, address, email address, telephone numbers, employment details and details about their business.

We may also collect and hold certain sensitive information that is reasonably necessary for the provision of our services, including health and criminal records. If you provide us with any sensitive information, you consent to us collecting that information and handling it in accordance with this Privacy Policy.

HOW WE COLLECT PERSONAL INFORMATION

We may collect Personal Information about you directly when you deal with us over the telephone, send us correspondence (whether by letter, fax or email), have contact with us in person, visit our websites or complete hard copy or online forms.

There are also circumstances where we may collect Personal Information about you from someone else. For example, from:
• Market research companies contracted by us to obtain information so that we may improve and market our services;
• Your employer;
• Other agents and valuers who may be involved in the services we provide;
• Property developers who contract us to market properties;
• Publicly available information and databases;
• Any of the companies within the St Trinity Property Group (both local and overseas);
• and Anyone you have authorised to deal with us on your behalf.

We also automatically collect certain information when you visit our websites or our subscribers receive promotional emails from us via cookies and other tracking technology (such as web beacons), some of which may be capable of personally identifying you. Such information includes the type of browser and operating system you are using, your IP address and how you use our websites.
Depending on the type of service you or our customers have requested, we may also seek to collect information about someone else from you (for example, contact details of your solicitor, emergency contact person or tenant). However, you must not provide us with Personal Information about another person unless you have clear consent from that person to do so, told them that their Personal Information will be handled in accordance with this Privacy Policy and directed them to where they can find it.
Regardless of how it is collected, we handle Personal Information in accordance with this Privacy Policy.

WHY WE COLLECT, HOLD AND USE PERSONAL INFORMATION

We generally collect, hold and use your Personal Information for the purposes for which it is provided to us (which will usually be obvious at the time of collection), related purposes or as permitted or required by law. Such purposes may include:
• Acting as agent for vendors or purchasers in relation to the sale of a property;
• Acting as agent for owners or tenants in relation to the leasing and or valuation of a property;
• Project management services;
• Structured advisory services;
• Town planning services;
• Capital allowances services and other consulting services in relation to the property market;
• Administration of our business, such as collection of overdue commissions or outstanding fees;
• Responding to client enquiries and communicating with you from time to time to maintain contact and keep you updated on the services you have requested;
• Forecasting future needs of our services and general quality assurance and training purposes;
• Engaging in legal proceedings and/or enforcing judgments and/or orders;
• Complying with the applicable legal or regulatory requirements and/or orders of competent authorities;
• Providing you with promotional and marketing information, including market research reports, newsletters, event invitations and/or property market information relating to our products and services which we think may be of interest to you; and Any other purpose identified at the time of collecting your Personal Information.

We generally use information automatically collected by cookies and other tracking technology to identify you as a valid user, ensure that no one else can sign on simultaneously with your account from another computer and help us serve you better based on your registration preferences. We may also use cookies to help us facilitate any promotions or surveys that we provide. Third parties whose products or services are accessible on our websites may also use cookies, and we advise you to check their privacy policies for information about their cookies and other privacy practices.

DISCLOSURE OF PERSONAL INFORMATION

We may disclose your Personal Information to third parties as may be necessary for any of the purposes stated in the above section. Such third parties generally include:
Our third party providers, contractors, consultants, agents and/or representatives (such as law firms, banks, financial institutions, insurers, IT providers, mortgage referral services providers and/or wealth management services providers) who provide services to us or on our behalf, including to:
• Conduct valuations;
• Assist with obtaining payment from creditors;
• Operate data centres;
• Conduct market research;
• Provide advice;
• Potential buyers, tenants, conjunctional real estate agents and brokers for the purpose for which the information was collected or for related purposes (for example to complete a transaction on your behalf or provide you with a service that you requested); Anyone you have authorised to deal with us on your behalf;
• Any of the companies within the St Trinity Property Group and their related companies; Government authorities, regulatory bodies, law enforcement agencies, courts, tribunals and/or parties to the legal proceedings where you have consented to this or we are required or authorised to do so by law;
• Debt collection agencies; and/or Any other third parties identified at the time of collection of your Personal Information.

DISCLOSURE OF PERSONAL INFORMATION OVERSEAS

Some of the third parties listed above to whom we may disclose your Personal Information are located overseas. For example:
Our information technology and business process service providers that are located in countries including (but not limited to) the Indonesia, India and Philippines; and Our overseas clients that are located in the same countries as the companies within the St Trinity Property Group.
Our contracts with these parties generally include an obligation for them to comply with Australian privacy law and this Privacy Policy.
However you acknowledge that, by agreeing to the disclosure of your Personal Information to these entities outside of Australia, we will no longer be required to take reasonable steps to ensure the overseas recipient’s compliance with the Australian privacy law in relation to your Personal Information and we will not be liable to you for any breach of the Australian privacy law by these overseas recipients. On this basis, you consent to such disclosure.

ACCESS, UPDATE AND CORRECTION OF PERSONAL INFORMATION

We take reasonable steps to ensure that the Personal Information we hold about you is accurate, complete and up-to-date. However, we also rely on you to advise us of any changes to your Personal Information. If you are able to access your Personal Information by logging on to an account you have with us, it is your responsibility to ensure your information is accurate, complete, relevant and up-to-date.
On request we will provide you with access to the Personal Information we hold about you, including for the purpose of correcting or updating that information, unless otherwise required or permitted by law.
There is no charge for making the request or giving the access to your Personal Information. We will deal with your request within a reasonable period after the request is made.
If we refuse to provide you with access we will provide you with a written notice that, at a minimum, outlines reasons for the refusal and the complaints mechanisms available to you.
If you wish to access the Personal Information we hold about you or to update or correct it, you can either do so by logging on to your account (if you have one) or contact us using the contact details provided below. We will require you to verify your identity and specify what information you require.

SECURITY OF PERSONAL INFORMATION

We take reasonable steps to protect any Personal Information that we hold from misuse, interference and loss and from unauthorised access, alteration and disclosure. For example, we implement IT security procedures including password protection, firewalls and site monitoring and we store your Personal Information on a secure server.we store your Personal Information on a secure server.
However, data protection measures are never completely secure and, despite the measures we have put in place, we cannot guarantee the security of your Personal Information. You must take care to protect your Personal Information (for example, by protecting any usernames and passwords). You should notify us as soon as possible if you become aware of any security breaches.

DIRECT MARKETING

When you register as a member on our websites, you will be given a choice as to whether you want to receive e-mail messages from us, including newsletters, announcements and e-mail communications about our latest news, products or services. To the extent the relevant local law requires us to seek your consent, we will only send such messages to you if you opt-in. If you do not wish to receive direct marketing calls or materials, you may use the unsubscribe facility in the marketing communication or contact our Chief Privacy Officer using the channels prescribed below. Further, as a registered member with us, you can modify your choice at any time by accessing your registered account with us. We will stop using your Personal Information for direct marketing if you so request.

PRIVACY ON OUR WEBSITES

Our websites may contain links to the websites of other entities. If you click on such links, you will be transferred to the websites of these entities. We have no control over, and are not responsible for, the privacy practices of these entities. You should read the privacy policy of these entities to find out how they handle your Personal Information when you visit their websites.

WHAT IF YOU HAVE A COMPLAINT?

If you wish to make a complaint about a breach of this Privacy Policy or the Australian Privacy Principles of the Act you can contact us using the contact details below. You will need to provide us with sufficient details regarding your complaint together with any supporting evidence. Our Chief Privacy Officer will investigate the issue and determine the steps that we will undertake to resolve your complaint. We will contact you if we require any additional information from you and will notify you in writing of the outcome of the investigation. If you are not satisfied with our determination, you can contact us to discuss your concerns or contact the Australian Privacy Commissioner via www.oaic.gov.au.

PRIVACY & SITE CHANGES

St Trinity Property Group may update this Privacy Policy from time to time so please review it periodically for changes. If the changes are significant or substantive, they will either be advised to you in writing or posted on our websites at www.sttrinity.com.au. Your continued use of our websites or services, requesting our assistance or the provision of further Personal Information to us (directly or via an authorised person) after this Privacy Policy has been revised, indicates your acceptance of the revised Privacy Policy.

OUR CONTACT DETAILS

If you have a query relating to this Privacy Policy or wish to make a complaint, please contact us using the following contact details:
• St Trinity Property Group
• Chief Privacy Officer

• PO Box 1235
• Menai NSW 2234
[email protected]

MORE INFORMATION

For more information about the Privacy Act in Australia and protecting your privacy, visit the (external link) website below:
oaic.gov.au