Is Christmas a good time to buy property? With the holidays coming up, people who want to buy a home are wondering if Christmas is a good time to start looking. In this article, we’ll take a closer look at what’s happening in the housing market right now and see if the festive season could be a special time for those thinking about buying a house.
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Is Christmas A Good Time To Buy Property?
The answer is Yes. Christmas proves to be a promising time for potential property buyers in the Australian real estate market. Several factors contribute to this opportune moment:
- Market Valuation and Home Values: According to the last data by CoreLogic, the market has achieved a remarkable valuation of $10.2 trillion, accompanied by a consistent rise in national home values. This stability and upward trajectory make Christmas an appealing time to consider property investment.
- Apartment Rent Surge: Investors stand to benefit from a forecasted 30% surge in apartment rents over the next five years. This surge is attributed to an undersupply of dwellings, presenting a lucrative window for maximising yields.
- Luxury Market Boom on the Gold Coast: The luxury apartment market on the Gold Coast is experiencing significant growth, marked by a 135% increase in unit sales. This trend signals increased demand for upscale living and a thriving real estate landscape, offering opportunities for investors, developers, and prospective buyers to capitalise on short-term gains and long-term investments in the growing luxury property sector.
- Regional Opportunities: Diverse trends are observed across regions, such as a 2.0% increase in land prices in Greater Adelaide, price stability in Melbourne, and sustained popularity in South East Queensland, particularly Logan and Ipswich, for new home buyers.
- Less Competition in The Market: In December, open home inspections typically see a decrease in attendance, offering a prime opportunity for buyers to negotiate better prices and secure desirable real estate with less competition. With many people leaving capital cities for holidays, both investors and first-home buyers will have an increased chance to enter the market and find their first home.
Considering these factors, this holiday season is an optimal time to make your first property purchase! Utilising the Christmas period to enter the property market in Australia could be a strategic move. The market’s overall positive trajectory, coupled with specific regional opportunities and the forecasted surge in rents, positions Christmas as a favourable time for prospective property buyers.
Current Market Trends
Australian Property Hits $10.2tn Valuation
Recent data indicates that the combined value of residential real estate in Australia has reached an impressive $10.2 trillion since October.
According to CoreLogic, national home values have steadily risen by 2.3% in the three months leading to October, with varying growth rates across regions.
The housing shortage in Australia is contributing to these price rises. Despite a 10.2% increase in new property listings compared to the previous year, supply remains 5.4% below the previous five-year average.
Apartment Rents Set to Rise by 30%
A significant 30% surge in apartment rents over the next five years presents a lucrative opportunity for existing investors and a brief window for new investors to optimise yields, according to a real estate firm.
This forecast, based on a substantial undersupply of dwellings relative to escalating demand, anticipates a drop in the current average apartment vacancy rate from 1.8% to just 0.8% by 2028.
Expectations of this rent surge heightened following the release of third-quarter inflation data, revealing a year-on-year increase in rents of 7.6%, the highest since 2009.
According to the Apartment Rent and Vacancy Outlook report, median rents for two-bedroom apartments across 53 precincts are to climb by $120 per week (or 26%) between 2023-2028.
Five key markets, including Sydney’s eastern suburbs, Parramatta, Melbourne’s northern suburbs, Perth City, and almost all precincts in Brisbane, are predicted to experience the highest growth, exceeding 30%.
The Gold Coast’s luxury apartment market is experiencing a substantial surge, with new apartment sales more than doubling over the September quarter, according to data from research house Urbis.
The impressive 135% increase in unit sales, totalling 470 over July, August, and September, reflects a growing demand for larger, upscale residences that have become a post-COVID-19 trend in the coastal city.
The surge in sales also coincides with an influx of cash buyers, with 80% of recent off-the-plan apartment purchases paid entirely in cash, according to a real estate firm.
The heightened interest in luxury properties is attributed to the maturation of the Gold Coast apartment market, moving beyond traditional boom-and-bust cycles.
The shift includes an evolution in the product offering, moving away from small holiday units to larger half and full-floor residences that cater to wealthy owner-occupiers.
Notably, a significant 57% of buyers are now Queenslanders, a notable increase from 40% just 12 months ago. This trend reflects the appeal of the Gold Coast as a beachside metropolis offering an enviable coastal lifestyle and robust employment prospects.
Regional Insights
Across various regions, the Australian property market exhibits diverse trends. In Greater Adelaide, land prices increased by 2.0% in the three months to the end of June, driven by robust population growth, a resilient local economy, and comparatively affordable prices.
In Melbourne, the price for a lot in the metropolitan area increased modestly by 0.3% in the three months leading to the end of September. South East Queensland, particularly Logan, remains a popular destination for new homebuyers.
The Gold Coast is experiencing a surge in luxury apartment sales, with a notable increase of 135% in unit sales over the September quarter. An unprecedented trend is the significant number of cash buyers, with 80% paying entirely in cash, reflecting the maturation of the Gold Coast apartment market.
Seize the Moment Before 2023 Ends!
The Australian real estate sector anticipates a sustained upswing in the coming year, as indicated by Oliver Hume’s September Quarter 2023 report. Land prices are rising in specific markets due to increasing housing shortages. The report highlights regional variations, noting diverse landscapes nationwide.
- In Adelaide, land prices rose by 2.0% in the three months ending June, reaching $250,000, showcasing resilience despite higher interest rates.
- Melbourne experienced a modest 0.3% increase in land prices, reaching $393,000 by September’s end, influenced by developer rebates and incentives.
- South East Queensland’s Logan stands out with a 37.4% market share, signalling positive trends amid slight price increases.
Despite improving volumes, cautious buyer approaches persist due to interest rates and economic uncertainties. Optimism is maintained by factors like population growth and housing shortages, though a full recovery is expected to take time.
The industry’s resilience, coupled with the gradual easing of price increases and efforts to address housing shortages, positions it for continued growth into 2024.
A Comprehensive Guide to Buying Property Over Christmas
The holiday season brings not just festive cheer but also unique opportunities in the real estate market. If you’re considering purchasing property over Christmas, here’s a guide to help you make informed decisions and capitalise on the season’s potential.
1. Understand the Market Dynamics: Research the local real estate market to understand its dynamics during the holiday season. In some areas, there may be fewer buyers, leading to motivated sellers and potentially better deals.
2. Determine Your Budget: Clearly define your budget before starting your property search. Consider all costs associated with buying a property, including closing costs, taxes, and any potential renovations.
3. Timing Strategies:
- Christmas Advantage: Recognise the unique advantages of purchasing property during the Christmas period, including potential market stability and less competition.
- Understand Holiday Closures: Be aware of potential delays in the process due to holiday closures of government offices, banks, and other relevant institutions. Plan accordingly to avoid unnecessary delays.
4. Due Diligence:
- Property Inspection: Conduct thorough property inspections, considering potential weather-related challenges during the festive season.
- Legal Considerations: Ensure all legal aspects are thoroughly reviewed, including contracts and property titles.
5. Festive Decision-Making: Strike a balance between festive celebrations and property decision-making. Use the holiday season to your advantage, leveraging the potential of less competition and a more relaxed market atmosphere.
Bonus Tips: Consult with Professionals:
- Real Estate Agents: Seek guidance from experienced real estate agents who can provide insights into local market conditions.
- Financial Advisors: Consult financial advisors to ensure your investment aligns with your overall financial goals.
Embarking on a property purchase journey during the festive season requires a thoughtful approach. By considering market trends, regional dynamics, and financial aspects, you can navigate the Christmas period as a strategic time to make a property investment.
Let Us Find Your Next Dream Home
Let us find your next dream home during this festive season! As the holidays approach, there’s no better time to unwrap the gift of a new home. Our team is dedicated to making your dreams come true, guiding you through the process with expertise and care.
Why choose us for your holiday home search?
- Personalised Service: We understand that your dream home is unique. Our team is committed to providing personalised service, tailoring our search to meet your specific preferences and needs.
- Expert Guidance: Our experienced real estate professionals are here to guide you every step of the way. From property searches to negotiations and closing, we’re committed to making your home-buying journey smooth and stress-free.
- Quick Closings: Want to ring in the new year in your new home? With our efficient processes, we can work towards quick closings, ensuring you start the new year in the home of your dreams.
Don’t wait for the new year – let the festive season be the beginning of your homeownership journey.
Contact us today.
Together, let’s unwrap the gift of your next dream home!
FAQs:
1. Can I buy a property over the festive period of Christmas?
Absolutely! Buying a property over Christmas is not only possible but can also offer unique opportunities.
With fewer buyers in the market, sellers may be more motivated, and you could potentially find better deals. Many real estate professionals continue to work during the holidays, so you can still progress with your home-buying journey, though it’s advisable to coordinate schedules with related parties.
2. Buying a property over Christmas: do’s and dont’s
Do’s:
- Thorough Research: Understand the local market dynamics and trends during the holiday season.
- Clear Budget: Define your budget, including all associated costs, before starting your property search.
- Engage with Professionals: Work with experienced real estate agents to navigate the market effectively.
- Flexibility: Be flexible with your schedule for viewings, inspections, and meetings with professionals.
- Consider Motivated Sellers: Take advantage of potential motivated sellers looking to close deals before year-end.
Don’ts:
- Neglect Pre-Approval: Ensure you have pre-approval for financing before starting the buying process.
- Rushing the Process: Avoid rushing the process; conduct thorough due diligence, including essential property inspections.
- Ignoring Potential Delays: Be mindful of potential delays due to holiday closures and weather conditions.
- Overlooking Weather Conditions: Consider the impact of winter weather conditions on property inspections and moving plans.
- Balancing Speed with Thoroughness: While quick closings are possible, ensure all necessary steps, including inspections and negotiations, are handled diligently.
