No matter if you were involved in property in some way or another throughout 2021 or not, you would likely know that despite the challenges thrown our way from COVID and lockdowns, the property market across Sydney and particularly the North Shore was thriving. The past year saw incredible buyer interest, properties exchanging quickly and rapid price growth right across the city and surrounding areas.
With the real estate industry ending 2021 on a high note, how did the start of 2022 fare? Well, one month in and we can certainly say that it’s been a strong start to the year for both sales and property management.
Keep reading below to find out more details from our Managing Director Matthew Bourn and Head of Property Management Nicola Quinn about how the market performed in January.
BUYERS GALORE ACROSS THE NORTH SHORE
In 2021 we found that the incredible property activity seen across the North Shore ultimately boiled down to one thing, lack of supply and high demand. So if this is anything to go by we can safely assume that 2022 will also likely be a big year for real estate.
In late 2021, particularly in the lead up to Christmas, we noticed some buyer fatigue with those looking to purchase feeling understandably tired after a long year of trying to find their perfect property and of course competing against the multitude of other buyers.
But with a new year comes a new spark of energy, with Managing Director Matthew Bourn saying that buyer enquiry has been stronger than ever across January.
“The buyer fatigue that we began to notice in late 2021 has moved and is no longer apparent in January 2022,” he said. “We have instead seen strong competitive interest in properties with increased buyer enquiry and large numbers of buyers turning up to open homes.”
Throughout the month of January McConnell Bourn received over 2,300 enquiries for our properties, with the main message coming from both buyers and buyer’s agents being that there simply isn’t enough properties on the market.
“Supply is still low which is likely causing the uprise in enquiries that we have seen at MB,” Matt said. “Buyers and buyer’s agents are screaming out for more options so if you’re thinking of selling, now would certainly be the perfect time in order to capitalize on the lack of competition as a seller and large pools of buyers.”
SHORTAGE OF HOUSES TO RENT
January has also been positive when it comes to Property Management across the North Shore with interest in the market starting a lot earlier this year compared to other years. Typically, we wouldn’t see much activity in leasing until the end of January, but with less people going away on holidays this trend has changed, and things aren’t looking to slow down throughout February.
Houses to rent are continuing to see the most activity, with renters looking for something offering more space and outdoor areas. A lack of stock when it comes to prestige houses to rent has meant that prices are also increasing in many areas.
“Houses are still achieving strong market rates this year and in some instances are achieving higher figures than their asking price due to the lack of stock in some suburbs,” said Head of Property Management, Nicola Quinn.
“One example of this was our recent success at 41 Trafalgar Avenue Roseville, which is a beautiful five-bedroom character home. This type of property is quite unique for the rental market and so it saw great interest from renters numerous applications received. As a result, the property was leased for $2,500 per week, $250 more than the original weekly asking price.”
Apartments didn’t see the same rate of increase or popularity as houses throughout 2021 but it does appear that this is slowly starting to change as more people head back into the rental market in 2022.
When it comes to investors, Nicola says that there is a feeling of confidence in the market and strong interest in entering the investment market.
“From an investor perspective we are definitely seeing confidence and interest to come or stay in the investment market compared to the last quarter of 2021 which saw numerous investors choose to sell in the hot property market,” Nicola said.
“As for predictions for the rest of 2022 on the North Shore, we foresee that houses or townhouses will continue to be of the highest interest stock wise as many people have now become used to having additional space. People are seeing more value in their places of residence having spent so much time there over the past few years and we believe this will continue to be reflected in the rental market.”
Whether you’re looking to buy, sell, lease or invest, our team of property experts at McConnell Bourn are here to help. Please get in touch on 9496 2777. We’re here to help!