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If COVID-19 has come with a silver lining this could be it – rents are at their cheapest in almost 13 years.

The increased availability of rental properties and the decreased number of those looking for such properties have been considerable downward pressure on prices.

The percentage of income needed to meet rental payments fell to 23.3 per cent in the June quarter (well short of the maximum 30 per cent considered appropriate), according to the Real Estate Institute of Australia.

This is the highest level of rental affordability since December 2007.

It’s a renter’s market. Picture: Getty

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The ACT is the only state or territory where rents rose in the June quarter. Home values in the seat of parliament have also been in positive territory, with the burgeoning public sector, who remained employed despite the pandemic, often pointed to as a reason why.

Nationally rents are down 0.5 per cent on this time last year.

“This can be mainly attributed to the reduction or stabilisation or rents,” REIA president, Adrian Kelly said.

“Rental affordability has not been this high since December 2007, a positive for renters in these COVID times.”

Prior to the coronavirus pandemic, the increasing number of households renting their home, according to the Australian Bureau of Statistics this figure jumped from 27 per cent in the decade from 1997-98 to 2017-18 by five per cent had placed upward pressure on rent prices.

The rental market has been flooded with properties during the COVID-19 pandemic.

For so long it has been a landlord’s market but now economic factors are falling in favour of tenants, and like the property sales segment, the rental market is beginning to splinter further.

“The west coast, Western Australia is doing well, stock levels are low and vacancy rates are low, but the east coast NSW is quite a different story, stock levels are high and vacancies rates for the first time are climbing close to four per cent,” said Maria Carlino, National Head of Property at The Agency.

“One sector of the market that is doing well for us is the executive market, $2,000 + per week. Victoria is at a standstill with lockdown measures, viewings are being done via video and our biggest concern in there is the mental and physical health of our clients.”

Inner city rental markets have been hit hardest, especially in Melbourne and Sydney as tenants have lost their jobs and moved in with family or friends. The absence of global travel has also meant a slump in international students and those who might have rented their properties for short stays on platforms such as Airbnb are no looking for longer term tenants.

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“The fact is there are more properties on the market and that is what’s pushing prices down,” said Prue Bryant, Rental Department Manager at Brad Teal.

“We go through stages in the real estate market where things favour landlords and vice-versa and now is a good time for tenants. People are looking to life in different areas they might not have been able to afford before, landlords are potentially looking to reduce rents to secure tenants and some homeowners are looking to rent out their own homes and then rent somewhere else they might prefer to live because of convenience or lifestyle”

Competition for rental properties is fiercest in Tasmania as Nikki Fischer found out Picture: Zak Simmonds

According to the REIA report, in NSW the proportion of income needed to pay the median rent is 27.5 per cent. In Victoria the figure is lower at 22.5 per cent, in Queensland and South Australia it is 21.5 per cent. In WA rental affordability is down 0.7 per cent on last year to 24 per cent.

That figure is the highest in Tasmania at 29 per cent, another indication of the strongly performing real estate market there. In the Northern Territory it is 20.4 per cent and in the ACT it is 22.3 per cent.

“Owners need to be aware of what their local markets are doing, and shift asking rental prices if required,” Ms Carlino said,

“Choice in the market creates competition therefore rental properties need to shine. This may be an ideal time to do that renovation.”

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The post Best rental affordability since 2007, says the Real Estate Institute of Australia appeared first on realestate.com.au.

Competition in Australia’s home loan lending market is heating up. Picture: Lukas Coch/AAP.

Competition in Australia’s home loan lending market is heating up, with a number of providers offering rates below 2 per cent.

Prospective home buyers are now able to seek out bargain basement loans with 9 lenders now offering variable and fixed interest rates as low as 1.9 per cent.

The low interest rate environment is being fuelled by the Reserve Bank of Australia’s decision to maintain the official interest rate at 0.25 per cent while the economy recoups from financial havoc wreaked by the coronavirus pandemic.

Low rates set by the RBA enable financial institutions to borrow money at a reduced cost, which supports cheaper loans to businesses and households.

The central bank has also implemented a term funding facility due to COVID-19, another mechanism to ensure the money market is provided with a cheap source of liquidity.

On Tuesday, the RBA decided to increase the funding facility by a further $110 billion.

RateCity research director Sally Tindall said the monetary policies implemented by the RBA would likely keep rates at record lows.

RateCity research director Sally Tindall says record low interest rates look set to stay. Picture: Supplied.

“The expanded term funding facility will also help keep rates at record lows for a number of years and could potentially prompt some banks to cut new customer rates even further,” she said.

“This week, Reduce Home Loans launched a new introductory home loan for owner-occupiers with a starting interest rate of just 1.90 per cent.”

The under 2 per cent club is entirely made up of smaller lenders including Easy Street, which is offering a variable rate of 1.95 per cent, and Homestar Finance, which is advertising a one-year fixed rate at 1.98 per cent.

However, Ms Tindall warned a number of these smaller lenders have very specific lending requirements, such as limits to borrowing amounts and location.

“Many of these sub-2 per cent details come with very specific terms and conditions,” she said.

“Whether it’s a honeymoon deal, a fixed rate or a cashback special, customers should read the fine print carefully and do the maths to make sure they end up ahead.”

Australia’s major banks are only offering rates at 2.19 per cent, while smaller lenders have fallen below 2 per cent. Picture: Joel Carrett/AAP

Hume Bank, which is offering at 3-year fixed rate at 1.99 per cent, only allows a customer to borrow the money at the specified rate if the property is 150 kilometres from the Albury Post Office in regional New South Wales.

Other loans also revert to higher interest yields after a certain date or period.

“While a rate cut is on the cards, the RBA board is going to want to keep it in its hand until absolutely necessary,” Ms Tindall said.

“Any cut to the [official] cash rate down to 0.10 per cent is likely to happen in 2021.”

Australia’s big four banks are offering two-year fixed rates starting at 2.19 per cent and variables rates from 2.69 per cent.

Both Westpac and NAB are advertising variable rates at 2.69 per cent, while Commonwealth Bank is offering 2.79 per cent and ANZ’s is 2.72 per cent.

RATES UNDER 2 PER CENT

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There’s no better time to experience living in a lavish home than right now with more former short-term rentals coming on to the market than ever, largely due to the impacts of COVID-19.

Living in luxury (at least temporarily) is made possible in these lavishly-styled furnished rentals across Australia, many of which are former Air Bnbs.

Since COVID-19 hit, there has been a flurry of furnished rentals come onto the market. The national number of furnished rentals spiked around April with the week of the 3-9 April showing the most listings appear in the last three months on realestate.com.au. Queensland and New South Wales boasted the highest number of new rental listings in that week.

Now is the perfect time to nab yourself a next-level lavish rental. Picture: realestate.com.au/rent

As our borders remain tightly shut, many luxurious holiday rentals, once catering largely to international holidaymakers, lay untenanted, and their landlords are casting the net wider to find more permanent residents.

Here are the most lavishly decorated furnished rentals on the market right now.

1. 2 Darley Street, Darlinghust, NSW

2 Darley Street

This over-the-top mansion could be the perfect COVID hangout. Picture: realestate.com.au/rent

Each room has been decorated with eclectic pieces. Picture: realestate.com.au/rent

Fancy learning piano during lockdown? Picture: realestate.com.au/rent

There are 7+ bedrooms in the house. Picture: realestate.com.au/rent

Of course, every mansion needs a pool. Picture: realestate.com.au/rent

This beautifully Italianate manor in Sydney’s Darlinghurst will make its new residents feel as though they are living in a museum.

The home has seven bedrooms and six bathrooms, with a pool, several sunrooms and a completely self-contained apartment.

It was originally built for renowned pastoralist Edward Chisholm in the 1880s set on a lavish 2,716 square metre property right in the heart of Sydney.  

The price is not advertised, so best to get in touch with the agent, Morag Christie from Sotheby’s.

2. 12 Duringan Street, Currumbin, QLD

Everyone in Australia is most likely dreaming of living here right now, where every day would feel like a holiday.

This four-bedroom, three-bathroom home along the Gold Coast is a contemporary solution to beachside family living.

The stylish furniture has gives the home a modernist feel with timber and leather pieces throughout.

12 Duringan street

How about renting this contemporary mansion? Picture: realestate.com.au/rent

The views from the home are spectacular. Picture: realestate.com.au/rent

Bi-fold doors allow a lovely breeze to roll in. Picture: realestate.com.au/rent

Wake up to this every morning. Picture: realestate.com.au/rent

There also seems to be an abundance of hammocks and swinging chairs at the new tenant’s disposal.

The price is $2,900 per week with an eye-watering bond of $11,600; any bored millionaires out there looking for a change of scene?

3. 2 D’Entrecasteaux Drive, North Bruny, TAS

The address might have friends guessing you’ve relocated to France, but this hideaway is actually located on Bruny Island.

Surrounded by bushland with stunning water views, this furnished rental immerses its residents in nature.

North Bruny rental

Surrounded by Bruny Island’s natural habitat. Picture: realestate.com.au/rent

The home has been styled with all modern appliances, including state-of-the-art television and kitchenware. Picture: realestate.com.au/rent

Isolation at its finest. Picture: realestate.com.au/rent

The home has three bedrooms and two bathrooms, along with room for an extensive car collection, advertised with seven spaces.

The home is currently for sale and the owners have decided to rent it out for a three-month lease at $600 per week while they find a buyer.

Not bad for a slice of paradise!

4. Exclusive Darling Point address, NSW

This rental is so exclusive it doesn’t have a listing address or the price attached to it. Think of it as the POA tag you see on items in the really fancy stores.

The furnished five-bedder, with a whopping seven bathrooms, overlooks Double Bay to Point Piper Harbour and comes fully furnished with everything the tenant needs to just move straight in, sadly wine bottles pictured not included.

Water views for days at this rental! Picture: realestate.com.au/rent

The bi-fold doors create the perfect indoor-outdoor zone. Picture: realestate.com.au/rent

The master bedroom is a restful spot. Picture: realestate.com.au/rent

Pretend that your keen eye for design brought this home together. Picture: realestate.com.au/rent

The pool area features a stunning mosaic. Picture: realestate.com.au/rent

The home is located on a quiet cul-de-sac and has all the modern amenities to make life a bit more fun including an in-ground saltwater heated pool, a landscaped gardens, four-car garage and an epic audio system. 

Get in touch with listing agent Alex Tinsley from The Agency to find out more.

The post 4 lavish furnished rentals you could temporarily live in appeared first on realestate.com.au.

Grand estate – 106-108 Seaforth Cres, Seaforth.

One of Seaforth’s largest estates has a new owner, little more than a year after it last changed hands.

The buyer is a family from Melbourne who are relocating to Sydney and bought the home without seeing it in person, although an extended family member did inspect it on their behalf.

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No. 106-108 Seaforth Cres is widely regarded as one of Seaforth’s largest and most luxurious estates. The sale price has not been disclosed, but is understood to be in excess of the most recent guide of $9.5 million.

The property was sold by private treaty through Jake Rowe and Anthony Zakos, of Rowe Partners Real Estate, in conjunction with Max Yue, of Di Jones Chatswood.

Seaforth stunner.

An aerial view.

Mr Rowe said there were two very keen buyers who wanted the luxury home, but it was the Melbourne buyer who dug the deepest – even knowing the COVID lockdown meant they could not see it in person.

A family member visited the property for them, showing the home’s many features on a FaceTime video.

The 2864sqm property last sold in July, 2019, for $8.12 million, according to CoreLogic.

The kitchen.

Living on a grand scale.

Mr Rowe said there was plenty of buyer interest in properties on the northern beaches at that price point.

“The prestige market is really strong at the moment,” he said.

The property comes with everything you would expect from a resort-style estate, including a floodlit championship-sized tennis court, heated in-ground swimming pool, putting greens and sprawling gardens that make the most of the Middle Harbour views.

The house itself was designed by renowned Castlepeake Architects, and has some 570sqm of internal living space.

The view.

There are numerous living spaces.

The versatile floorplan has numerous formal and casual living and dining spaces, which flow out to the many terraces and decks. The kitchen has a calacatta island bench with Miele appliances.

The main bedroom takes up most of the upper floor, with a walk-in wardrobe, ensuite and private deck. There is another bedroom on this level, and that also has access to its own private deck.

Other features of the five-bedroom home include a media room, home office, fully self-contained guest studio accommodation, ducted airconditioning, security system, surround sound system, gym or games room plus four-car garage and storeroom with internal access.

The property is close Sangrado Park, buses and Seaforth Village.

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Australia’s prestige property market is flourishing despite the global health pandemic and economic recession, with some of the nation’s most exclusive suburbs recording significant price growth in the past year.

Data compiled by realestate.com.au shows premium property remained buoyant in the 12 months to July.

Even the top end of the Melbourne market performed well with the elite suburb of Toorak sustaining almost 20% growth to net a median price of $4.575 million in the 12-month period.

At the same time, the Northern Beaches suburb of Clontarf in Sydney recorded 27.6% growth to land a median price of $3.8 million.

• Use the interactive below to discover the top 10 most expensive suburbs in each capital city in 2020

Nerida Conisbee, chief economist at realestate.com.au, said prestige property had fared well despite the challenging economic climate and it was likely the most expensive suburbs would retain value best during the recession.

“What is happening across Australia is a really strong shift to premium properties. We are seeing some decent price growth in premium suburbs,” Ms Conisbee said.

“The best performers continue to be premium suburbs. To-date, most well paid, white-collar professionals are still employed and may have only had minor cuts to their incomes.

The exclusive Melbourne suburb of Toorak is known for its grand homes. Picture: realestate.com.au/buy

“When we look at search data, we can clearly see that people are still very focussed on premium suburbs. It’s the flight to quality, people see them as holding value better, we haven’t seen much employment loss in white-collar employment as yet and just that general level of confidence.”

“They aren’t spending money. You can’t travel, you can’t really go out. Not only are there people who are earning the same sort of money they were before COVID, but they’re also not spending much so their level of savings is higher.”

The realestate.com.au data set is based on median house prices in suburbs with at least 30 sales in the past 12 months, but does not include some tightly held locations including Peppermint Grove in Perth, Point Piper in Sydney and Teneriffe in Brisbane, which did not meet the minimum number of sales to qualify for the data set this year.

Low supply is driving up prices

Matt Ettia, from Biller Property, Double Bay, said a shortage of prestige listings was fuelling more competition at the upper end of the market.

“There’s a real lack of choice at the moment and I really think that’s what’s driving the top end of the market,” Mr Ettia said.

He said the strong demand for homes in Bellevue Hill was evident this week with the sale of the spectacular mansion at 42 Drumalbyn Road, which was snapped up prior to auction on Tuesday for around $6.5 million.

More than 80 groups inspected the property during the four-week marketing campaign, he said.

This mansion in Sydney’s Bellevue Hill sold for around $6.5 million prior to auction. Picture: realestate.com.au/sold

Mr Ettia said the property was the only one in the $6 million to $7 million price point in Bellevue Hill before its sale.

“Everything that is on the market in that sector is selling and auctions are doing well, too. Things are moving and I think it’s purely fuelled by the lack of choice,” he said.

“It will be interesting to see what happens in spring. How much stock comes to market will determine how strong the market is. If there’s too much, it will dilute things and if it continues to be scarce, I think the market and prices will only get stronger.”

Canberra agent Mario Sanfrancesco, whose name is synonymous with selling exclusive homes, said the prestige market in the nation’s capital was robust despite a lack of listings.

“The Canberra market is probably as strong as it’s ever been,” said Mr Sanfrancesco, from Blackshaw, Manuka.

Canberra’s Red Hill ranked as the most expensive suburb in that city according to realestate.com.au data. Picture: realestate.com.au/buy

“The stock levels are very tight, there’s very few listings of that calibre available on the market and those that have come on have been attracting good interest with fewer days on market.”

Mr Sanfrancesco said off market sales were more prevalent with some sellers reluctant to list in the uncertain market.

He sold 38 Parkhill Street in Pearce off market for just over $3 million, setting a new record for the suburb by $700,000.

“The entire inner south, Forrest, Old Red Hill, Griffith and parts of Narrabundah are highly sought after. But that’s extending to the fringes too. I recently sold a property in Pearce in Woden [Valley], which broke a record for the suburb. The previous record was $2.3 million and this property sold for just over $3 million,” Mr Sanfrancesco said.

“The market is picking up slightly but it has been very tight this whole year. In some of those areas stock levels would be down by 50% of those top properties, but I’d expect that’s going to loosen up a bit over the next six to eight weeks.”

The most expensive suburbs city-by-city:

Toorak, Melbourne

Toorak and Canterbury retained the crown as the top two most expensive suburbs in Melbourne, sustaining significant growth of 19% and 9% respectively.

Toorak holds a median price of $4.575 million while Canterbury sits at $2.725 million.

Properties like this nine-bedroom home at 16 Balwyn Road Canterbury are in demand. Picture: realestate.com.au/buy

Brighton surged from fifth position to third with 9% growth and a median of $2.72 million, while Armadale took out number five with 9% growth and a median of $2.6 million.

Balwyn house prices experienced a 1% drop, pushing the suburb from third position last year to number eight this year. 

Bellevue Hill, Sydney

The strong demand for homes in Bellevue Hill was evident this week with the sale of the spectacular mansion at 42 Drumalbyn Road, which was snapped up prior to auction on Tuesday for around $6.5 million.

Bellevue Hill jumped to top spot in the year to July with growth of 7%. It secured a median price of $6 million, knocking Vaucluse from top billing, which experienced a 17% drop in growth to $5.2 million.

Clontarf came in at number three with median house price growth of 28% to $3.8 million.

The median house price in Sydney’s Clontarf shot up by 28% in the 12 months to July 2020. Picture: realestate.com.au/buy

Point Piper, which has traditionally been very tightly held, did not attract enough sales to be included in the realestate.com.au figures.

New Farm, Brisbane

New Farm remained the most expensive suburb in Brisbane in 2020 with growth of 14% to a median price of $1.62 million.

New Farm kept top spot as most expensive suburb in Brisbane in 2020. Picture: realestate.com.au/buy

Bulimba dropped to number three with a median price decline of 4% to $1.31 million.

St Lucia ranked in fourth spot with growth of 19% to $1.3 million.

Teneriffe, which has traditionally been very tightly held, did not attract enough sales to be included in the realestate.com.au data set for 2020.

Dalkeith, Perth

Dalkeith has been leading the way in the Perth market, with the suburb securing a $27.5 million sale this year.

The sale, which is likely to be the top sale for the city in 2020, was of 89 Watkins Road – the former home of the late high-profile businessman Alan Bond and his wife, Eileen.

The late Alan Bond’s former home in Dalkeith recently sold for a record $27.5 million. Picture: realestate.com.au/sold

The realestate.com.au data shows Dalkeith had no growth in the 12 months to July with the median house price remaining at $2.3 million.

Cottesloe’s prices took a backwards step, dropping 8% to $1.917 million.

Peppermint Grove, which has traditionally been very tightly held, did not attract enough sales to be included in the realestate.com.au figures.

Red, Hill, Canberra

The exclusive locale of Red Hill sustained 10% growth in the past year to take out prime position with a median house price of $1.6 million.

Red Hill ousted Yarralumla from top pegging, shuffling the lakeside suburb to number four after a drop of 14%. The median house price for Yarralumla now sits at $1.35 million.

The prestige Canberra suburb of Yarralumla fell from top spot to fourth most expensive suburb in the nation’s capital. Picture: realestate.com.au/sold

Red HIll, which has traditionally been very tightly held, did not attract enough sales to be included in the realestate.com.au figures.

St Peters, Adelaide

St Peters, which was the third most expensive suburb in Adelaide in 2019, took out top spot in 2020 with median house price growth of 19% to $1.415 million.

Adelaide’s St Peters jumped from 3rd most expensive suburb in 2019 to number one in 2020. Picture: realestate.com.au/buy

Despite price declines of 7%, Malvern came in at number three with a median house price of $1.212 million.

Lyons, Darwin

While there have been strong predictions for Darwin’s property market, data compiled by realestate.com.au shows three of the Top End’s most expensive suburbs – Lyons, Rosebery and Durack – experienced median house price drops.

Sandy Bay, Hobart

High flying stalwart, Sandy Bay, retained top spot even with a small jump of 3% growth to a median price of $940,500.

The desirable suburb of Sandy Bay in Hobart kept its number one ranking as most pricey suburb. Picture: realestate.com.au/buy

Acton Park came in at number two with 1% growth to $830,000, while Taroona and Bellerive also featured in the top five most expensive suburbs in Hobart, despite Taroona experiencing a 3% drop to a median price of $715,000 and Bellerive’s median surging by 18% to $700,000. 

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The thought of selling your home because of financial hardship is heartbreaking, and while it’s always preferable to hold property, particularly in the midst of a recession, for some COVID-hit home owners, the decision to sell in the current market conditions could prevent long-term pain. 

Back in March, the Australian Banking Association announced six-month mortgage holidays to assist home owners that were unable to make mortgage repayments because of job losses during COVID-19. As the loan deferral period nears its end, lenders are encouraging borrowers to restart repayments, if they can. For those still struggling, the mortgage holiday period has been extended by a further four months to January 2021.

However, as Australia officially enters its first recession in almost three decades as a result of the health crisis, further job losses are expected with some industries expected to take years to recover. That means a loan holiday for some mortgage holders is only putting off the inevitable.

While it’s always preferable to hold property, home owners with poor financial prospects should consider selling sooner rather than later. Picture: Getty

If we look at the years leading up to Australia’s last official recession in the early 1990s, the unemployment rate had reached a low of 5.8% in late 1989. It then rose to 11.2% in December 1992 and didn’t fall back to pre-recession levels until August 2003.

Although it wasn’t a ‘technical’ recession, prior to the Global Financial Crisis the national unemployment rate reached a low of 4.0% in February 2008 and climbed to 5.9% in June 2009. The lowest the rate has been since then is 4.9%, and that was only for a month.

Unemployment reached 5.1% in February this year before the pandemic hit, and it’s now sitting at 7.4% with predictions it could hit 10% by Christmas.

Why are these figures important? Because the hard reality of the current recession is that some of the jobs that have been lost are not going to come back and the unemployment rate is unlikely to return to its pre-pandemic level for a number of years.

Given this, mortgage holders who have lost their jobs should seriously consider the likelihood of them finding another job, or a job with an equivalent salary. If the likelihood of this occurring is low, they should strongly consider selling their properties sooner rather than later.

Three reasons why selling now is a good option

1. Competition

Of course, selling a home is much easier said than done. Most humans are optimistic by nature and many Australians hold the belief that the current situation will improve (and it will), but the longer struggling home owners wait to sell, the more competition there is likely to be.

Struggling home owners will face less competition in the market if they decide to sell now. Picture: realestate.com.au/buy

One of the main reasons that COVID-hit mortgage holders should consider selling now is the fact that the supply of new listings coming onto the market is very low, and not just in Victoria where stage four lockdowns have hampered the property market.

At the end of August 2020, the number of new properties listed for sale across the country was about 9% lower than for the same period last year. Meanwhile in Victoria, listings were significantly lower but they were generally at similar levels to what they were in 2019 elsewhere. Keeping in mind that 2019 had the lowest number of new listings for any year since 2011.

2. Demand is high

Another reason why home owners in financial hardship should consider listing their properties for sale now is that demand for property is at record-highs. There has never been more people actively looking for properties for sale, and equally, the volume of high-intent search behaviour on realestate.com.au is also close to an historic high and substantially higher than a year ago.

The lack of stock is potentially hindering buying activity currently because many potential buyers simply cannot find the right property to purchase. Especially when you consider that spring is the time of year when we would typically see new property listings increase.

3. Record low interest rates

Finally, a key contributor to the increase in interest for properties currently is the record low cash rate. According to the latest Reserve Bank of Australia data, the new three-year fixed rate mortgage rates average is 2.3%, the lowest they have ever been.

The RBA has stated that it will not increase official interest rates until such time as progress is made towards full employment and it is confident that inflation will be sustainably within the 2% to 3% target band.

While the cash rate may not increase for a number of years, there is nothing to say that banks will not independently increase mortgage rates. Given this, there may be some urgency for people to purchase a home and lock in these low rates sooner rather than later, and an increase in the supply of homes for sale is imperative for buyers to achieve that.

Mortgage rates are the lowest they have ever been in Australia. Picture: realestate.com.au/buy

Deciding to sell is no easy decision

The decision to sell a property should never be taken lightly, particularly during a recession. The preference should always be to hold on to your property or downsize – but out of desire, not necessity.

However, in economic conditions such as the current situation, it would be wise for home owners with poor financial prospects to take advantage of the current market conditions.

There are no guarantees that the market dynamics we are currently seeing will remain the same in the coming months.

The post Three reasons why COVID-hit home owners should consider selling now appeared first on realestate.com.au.

Buyers can get ready to strike when restrictions ease. Picture: Robert Cianflone/Getty Images

Buyers must do their homework before launching into the spring property market when stage four coronavirus restrictions ease, experts say.

Realestate.com.au chief economist Nerida Conisbee said a key part of the househunting process was finding the right location to suit your needs.

She warned some suburbs and property types were “higher risk than others for price decline” — especially in the midst of a downturn. This was the case for the inner-Melbourne apartment market.

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“You could probably get a good price because there are a lot for sale,” Ms Conisbee said.

“But also keep in mind if you are investing it might be difficult to get a tenant.”

On the flip side, while “you’re not going to get a bargain” in premium suburbs like Elwood and Prahran, values were holding up much better there.

“Broadly, the outlook is very uncertain,” Ms Conisbee said. “If you are looking to buy now, keep in mind you’ll have far better luck (earning capital growth) by holding (the property) for a longer time period.”

Realestate.com.au chief economist Nerida Conisbee.

Collings Northcote director Christian Gravias said school catchment zones, public transport and nearby shops were important features.

“Find somewhere that has great amenities and where there’s lots of parks and outdoor spaces,” Mr Gravias said.

He added a diverse spread of stock was more desirable than a suburb dominated by apartments.

Real Estate Buyers Agents Association president Cate Bakos said online tools like Google Street View allowed buyers to carry out a “virtual drive-by” of their target neighbourhoods.

Once they’d nailed down a location, househunters should start researching recent sales to familiarise themselves with prices in that area.

“Get on a ‘sold’ tab of a search engine (like realestate.com.au) and have a look at what the going rate is for the product you’re after in your suburb of choice,” Ms Bakos said.

Buyer’s agent and Real Estate Buyers Association of Australia president Cate Bakos.

Buyers have been advised to do their research before Melbourne opens up again. Picture: Daniel Pockett/Getty Images

“(Don’t) look at quoted sale prices as they can come unstuck, especially where auctions are involved.”

Ms Bakos said would-be buyers should also use the lockdown period to start talking to agents in the areas they were looking to buy into.

“Agents will have a bit of time on their hands right now, they’ll be pretty happy to hear from you,” Ms Bakos said.

Mr Gravias said buyers would ideally buy a house or townhouse to capitalise on price growth, but apartments were a cost-effective alternative to get into a prized suburb.

He added villa units were “amazing if there’s not that many on the title”.

“They’ve got very good bones, they were mostly built in the ‘60s and ‘70s so the workmanship is great and they can be renovated,” he said.

“I’d be looking to buy an apartment that doesn’t have many amenities so the owners corporation fees aren’t too big.”

Extra car spaces and outdoor areas were also desirable, Mr Gravias added.

Castlemaine Property Group agent Elouise Dale said buyers looking to move out of Melbourne should “do a lot of homework” on what their target region offered, to be ready to pounce once restrictions eased.

“Castlemaine, for example, has a train station, and the NBN services that whole Mount Alexander area,” Ms Dale said.

She said she’d seen a surge in demand and multiple offers placed on every property she had listed for sale between Melbourne’s two major lockdowns. The easing of this one would create “spring to the power of 10”, she predicted, meaning buyers should “be prepared to be competitive”.

For budding first-home buyers, the research process should also involve determining what grants were available to them, Ms Conisbee said. These included stamp duty exemptions on purchases below $600,000 and discounts for buys up to $750,000.

Amy Lunardi buyer’s advocate Amy Lunardi said buyers with secure income should start their property search as soon as possible, predicting “a flurry of activity” in the market post-lockdown.

—with Samantha Landy

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jack.boronovskis@news.com.au

@jackboronovskis

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The Prospect property at 5 Te Anau Avenue was snapped up before auction. Pic: realestate.com.au

Fire damage did little to deter househunters from getting into a pre-auction bidding war for one Prospect character home.

The 1925-built bungalow at 5 Te Anau Avenue was snapped up before it had a chance to go to auction following strong demand.

Harris Real Estate agent Henry Gower Tillett, who sold the property with Georgie Todd, said they received multiple offers for the beloved family home before it sold for $868,000.

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It had been damaged by fire but that didn’t deter prospective buyers. Pic: realestate.com.au

The owners received multiple offers for the home prior to auction. Pic: realestate.com.au

“The competition drove the owners to accept an offer prior to auction,” he said.

“It was more sold as the land value.

“It gave buyers a chance to be able to get into such a tightly held Prospect market.”

Despite extensive fire damage throughout, Mr Gower Tillett said everyone who made offers saw the house’s potential and planned to breathe new life into it.

“People could see past the damage,” he said.

“While an unfortunate circumstance for the previous owners, they were excited to hear that a new family wanted to restore it to its former glory when it was cherished for years.”

It was on the market for two-and-a-half weeks before it sold. Pic: realestate.com.au

The property was on the market for two-and-a-half weeks before it went under contract.

On a sprawling 759sqm block, it has four bedrooms and two bathrooms, as well as two sheds and a tandem carport.

It had been modernised prior to the fire.

Mr Gower Tillett said it was a combination of the type of home and the suburb that made the property so popular among prospective buyers.

Latest realestate.com.au figures show Prospect’s median house price is $705,000.

It is on a 759sqm block and has four bedrooms and two bathrooms. Pic: realestate.com.au

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HOBART has outperformed Australia’s major capital city property markets, recording another small rise in median dwelling values despite COVID-19.

The city recorded a dwelling (house and units) value increase of 0.1 per cent in August despite a national decrease in values of 0.4 per cent.

Houses saw the biggest monthly increase, up 0.3 per cent, but a 0.7 per cent decrease in unit values clawed back the dwelling average increase, according to the CoreLogic Hedonic Home Value Index for August.

Melbourne, which is in the grips of a strict level four lockdown due to outbreaks of the novel coronavirus, saw a decline of 1.2 per cent (overall dwelling values) over the same one month period.

Sydney saw declines of 0.5 per cent, while Brisbane posted a 0.1 per cent drop.

The best performing city was Darwin, which saw values increase by 1 per cent in August, albeit of several years of declining values.

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CoreLogic’s head of research Tim Lawless said the performance of each housing market was “intrinsically linked with the extent of social distancing policies and border closures which also have a direct effect on labour market conditions and sentiment”.

“The Melbourne housing market is the main drag on the headline results,” he said. “Through the COVID period to date, Melbourne home values have fallen by 4.6 per cent.”

In Hobart, dwelling values increased 0.3 per cent over the last quarter and 5.5 per cent over the past 12 months, with median values (houses and units) reaching $490,743.

“Looking forward we are likely to see a diverse outcome for housing markets around Australia, depending on how well the virus is contained and the regions exposure to

other factors such as its reliance on overseas migration as a source of housing demand,” Mr Lawless said.

Tim Lawless

Tasmania’s borders have been slammed shut since March 19, with Premier Peter Gutwein recently announcing the moat would remain in place until at least December 1.

The state has just one active case – a man in hospital who returned from Melbourne after seeking medical treatment in August.

Low levels of cases and eased restrictions in many regional markets is just two of the factors holding up the smaller markets.

The data shows the best performing markets besides Hobart are Adelaide and Perth (0.0% change), Canberra (up 0.5%) and Darwin (up 1%).

All of those markets have zero or minimal cases and more freedoms.

Mr Lawless said regional markets also tended to be less reliant on overseas migration.

“Regional markets may also be appealing for their relatively low density and lower price points,” he said.

“The normalisation of remote work through the pandemic could make proximity

to major cities less of a factor in home purchasing decisions.”

Anecdotally, local real agents are reporting an uplift in interstate buyer inquiry, particularly from Victoria.

Petrusma Property Hobart/Sandy Bay managing director and auctioneer Sam Towns said he had sold properties to “plenty of interstate buyers”, with a number prepared to buy sight unseen.

He said border closures meant buyers were able to do virtual tours of homes instead.

“They are from all over (Australia),” he said. “I think people are seeing Hobart and Tasmania as a bit of a sanctuary.

“If they can’t move immediately, they are certainly wanting to make the move here one day.

“And if their job can be done remotely, that creates flexibility.”

Mr Towns said the key suburbs being looked at by interstate buyers were those closest to the CBD – West Hobart, Sandy Bay, Battery Point and the like.

He said Hobart offered great views, lifestyle, proximity to the city, lifestyle and relative affordability compared to the likes of Sydney and Melbourne.

Charlotte Peterswald for Property sales manager Debbie Heron said interstate buyer inquiries were “trickling in” but she expected that change dramatically once the border opened.

“Once borders open, the Hobart market will go ballistic,” she said. “In the interim, locals are taking advantage of less competition.”

CoreLogic Hedonic Home Value Index August 2020 – Change in dwelling values (houses and units combined)

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This waterfront mansion at 32-36 The Anchorage, Noosa Waters, has just sold for close to $12m.

THE spectacular Sunshine Coast holiday home of the man who built an empire on toilet brushes and brooms has sold for close to its $12 million asking price.

The 13-bedroom, 12-bathroom mansion at 32-36 The Anchorage, Noosa Waters, sets a new record for Noosaville, which is fast becoming the state’s hottest postcode with big money changing hands at a rapid pace.

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The wet-edge pool at 32-36 The Anchorage, Noosa Waters, is rather inviting.

The property known as ‘Hayven’ was owned by the late businessman, Donald Hay, who died from melanoma last year aged 76.

Mr Hay founded the company, Hayco, 35 years ago and built it into one of the world’s biggest brush makers — now shipping 200 million items a year to more than 60 countries.

Donald Hay, the late multi-millionaire businessman who founded the company, Hayco, specialising in brushes. Picture supplied.

Reed & Co. Estate Agents principal Adrian Reed, who negotiated the sale, said the property was “a timeless masterpiece”.

“It is one of the most extraordinary homes to be built in Queensland, where attention has been given to every detail and decision,” Mr Reed said.

The impressive architecture of the home at 32-36 The Anchorage, Noosa Waters.

Mr Reed declined to reveal the buyer or exact sale price, but said the property had attracted interest from New York and London.

The house can sleep up to 32 guests and features onsite caretaker quarters, a maid’s quarters, a 25-metre pool, a championship tennis court, a nightclub, a media room, a gym, a steam room, a four-car garage and a guest wing with eight bedrooms.

The sale of this property sets a new record for Noosaville.

A separate family wing of the home includes the master suite with his and her bathrooms and walk-in wardrobes, plus bedrooms for the children.

The house was designed by architect Shane Thompson and built in 2002 on a huge, 2976 sqm block.

Inside the home at 32-36 The Anchorage, Noosa Waters.

The property has a 60m water frontage and two private jetties.

The sale comes amid a flurry of transactions in the Noosaville 4566 postcode in the past month, as buyers flock to the lifestyle the idyllic area offers.

The tennis court at the property. Image supplied.

A four-bedroom, three-bathroom house at 27 Wyuna Drive recently sold for a cool $6 million.

Down the road, properties at 33 and 59 Wyuna Drive also recently sold for significant sums.

The view from the property at 32-36 The Anchorage, Noosa Waters. Photo supplied.

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