CBD PROPERTIES ARE ABOUT TO BOUNCE BACK

$10 Trillion, is the next likely milestone for the Australian property market.

Australian residential property prices rose 23.7 per cent in 2021, recording the fastest growth in at least 18 years (ABS).

As we edge close to the end of the first quarter of 2022, people of Australia, especially the east coast, have already experienced a number of severe weather events such as storms and floods. And in the international arena there is the war in Ukraine, which is causing some instability in the minds of Australians, as the consequences could possibly affect our economy. Already, the fuel prices are causing major pain for many Australians, among other price hikes due to inflation. This would then lead to a conversation on a likely interest rate rise in the near future, which will then have a direct impact on property investors.

Evidently, the Covid-19 pandemic impacted on people’s expenditure and savings, which led to more people seeking property investment opportunities away from the hustle and hustle of city centres as they opted in to purchasing more affordable homes in the outskirts. The need to commute to the CBD for employment soon became a thing of the past.

Now, with worries and uncertainties presented by Covid-19 itself starting to look like a thing of the past, the CBD apartments or properties within a hop skip and a jump, which remained almost empty in some parts, are looking to be in demand.

Especially in places such as inner-city Melbourne, there were high vacancy rates and thus, the rent prices remained low. With vaccinated travelers and international students allowed back in Australia, CBD property prices are looking to head back up. Property investors will seek to enter the inner-city property market once again, and if you are lucky, you may be able to pick up a ‘bargain’ in today’s market before the prices get out of reach once again.

As property investment advocates, we advise that you obtain professional advice prior to making your investment decision. Grit Property Group can guide you towards obtaining the right advice and assist you in developing a property investment strategy that will not only help grow your property portfolio, but also provide end to end management of your property investment process.

Grit Property Group | www.gritproperty.com.au | [email protected]