Here we are at the end of the 2020 Financial Year, and when we look back on the past 12 months its been rather an eventful period.
Local Sales Market
Despite speculation in some quarters that the crisis faced by the economy this past few months would lead to a “major” correction in real estate sale prices, we have yet to see the evidence of this to any greater extent in our immediate area. Many of our local suburbs are performing well and some statistics indicate that year on year growth remains in positive territory. The first 6 months of the financial year saw a rebound in the market from the 2018 slowdown and this is highlighted in the recent statistics in our opinion. Buyer interest remains strong and many properties are selling on or before scheduled auction dates or as “off market” offerings to buyers who have been seeking something particular for an extended period. Whilst we don’t foresee any indicators that property will experience growth over the short term it still remains that residential property is a great long term investment and is secure in troubled times.
The commercial market is currently experiencing change, and may continue to do so over the next 12 months, as many owners of commercial/retail property face declining revenues for the foreseeable future and prices come under pressure as yields are reduced.
Local Rental Market
Like the rest of the economy the rental market has experienced significant upheaval in recent months. For many years there has been a large transient population notably in Manly, as many travelling professionals come to Australia to do a stint down-under for a year or two. With the coronavirus lock-down many international and interstate residents chose to leave the area and return home to their families. This manifested as an increase in the number of rental properties on the market. We also observed many furnished properties that were previously rented via AirBnB returning to the longer term rental market.
According to realestate.com.au, the suburb by suburb average weekly rent compared to 12 months ago shows some startling outcomes, as is the case when reviewing averages, there is often some outlying cases that end up skewing the results. For instance the Fairlight results are influenced by a larger number of 4-5 bedroom properties on the market 12 months ago and more recently a higher volume of 1 bedroom apartments.
The median weekly rent for a 2 bedroom apartment in Manly is now at $750 per week, compared to Fairlight at $700 per week, Queenscliff $654 per week, Manly Vale at $594 per week and Balgowlah coming in at $594 per week. The trend in the average weekly rent has always been seasonal with the strongest results acheived during the summer months and the last 12 months for a selction of suburbs are detailed below.
Please don’t hestiate to reach out if you were interested to discuss a local suburb in more detail- we would be delighted to assist you.