Queensland Properties: Stock on the Rise
Monday September 9th 2024
Weekly Market Wrap: Shifting Dynamics in Queensland's Property and Rental Markets đ
This week, we focus on two significant shifts in the Queensland property landscape: the increase in stock on the market and the evolving rental market, both of which are poised to have far-reaching impacts. Whether youâre looking to buy, sell, or rent, understanding these changes will be key to navigating the next few months.
đ Queensland Properties: Stock on the Rise
There has been a sharp rise in new property listings, coupled with a notable reduction in the number of sales. For example, in Robina last Saturday, there were 61 open homesâa considerable jump from 37 open homes on July 6th, only three months ago.
This rise in available listings is a key indicator that sellers need to adjust their expectations. Properties sitting too long on the market risk losing value in the eyes of buyers, making it harder to achieve top dollar. Sellers should focus on competitive pricing and strong marketing strategies to stand out as competition increases.
Is the Market Shifting in Favour of Buyers?
Over the next few weeks, weâll gain more insight into how the remainder of 2024 will unfold. With stock levels rising and sales softening, buyers may find themselves in a stronger negotiating position, especially as interest rates stabilize and economic conditions remain uncertain.
Weâre already seeing signs of a shift towards a more balanced market. Properties that were previously sold within days are now taking longer, giving buyers more time and options. Sellers may need to reconsider pricing strategies to remain competitive in this changing landscape.
đď¸ A Glimmer of Hope for Renters: Market Easing?
While stock levels are rising for home sales, thereâs also good news for rentersâparticularly those under rental stress. The Gold Coast ranks among the areas with the highest levels of rental stress in Queensland, with suburbs like Robina, Burleigh Waters, and Clear Island Waters seeing sharp increases in rental prices over the past few years.
However, recent data shows that rental growth is slowing. Nationally, rents have been flat for two months in a row, marking a major change after years of relentless growth. This stagnation signals a shift in the market, providing some relief to renters who have been struggling with affordability.
According to PropTrack senior economist Paul Ryan, this is the first time in years that rent growth is now below income growth, offering renters a much-needed break from the rapid price hikes of recent times.
Gold Coast Suburbs Under Rental Stress
In suburbs like Burleigh Waters, Clear Island Waters, and Labrador, high rental stress is becoming a critical issue. Landlords in these areas are finding it harder to justify rent increases, as the demand weakens and vacancy rates rise. With fewer inquiries per rental property, landlords need to be more cautious about pushing rents higher, or risk prolonged vacancies.
While rental prices have increased significantlyâby 7.8% nationally over the past yearâthe recent flattening of rents signals a change. Over the past few months, rents have risen by only 3%, with most of that growth happening early in the quarter. Now, renters are finally seeing some stabilization.
đ What Does This Mean for the Rest of 2024?
The dynamics of both the property sales and rental markets are shifting, and the next few months will be crucial. For sellers, rising stock levels mean increased competition. Itâs essential to ensure homes are priced correctly and well-presented to attract buyers. Pricing too high could result in longer times on the market and potential price cuts down the line.
For renters, the market is showing signs of balance. While itâs too early to declare a complete reversal, the flattening of rent prices offers a welcome respite for those under pressure. With vacancy rates creeping upward and income growth outpacing rent increases, renters may see fewer rent hikes and more choices in the months ahead.
đ Insights for Buyers, Sellers, and Investors
For buyers, the rise in available stock may offer more opportunities and negotiating power. With less urgency to make quick decisions, now could be a great time to secure a property in a more balanced market.
For sellers, competitive pricing and strong marketing are critical. As more homes come onto the market, standing out from the crowd becomes more challenging. Properly priced and well-presented homes will have a better chance of selling quickly and for top dollar.
For investors, the cooling rental market could mean a pause in the rapid growth of rental yields. However, there are still opportunities in areas where demand remains strong. Understanding local dynamics and making informed choices will be key to successful investments in this changing market.
đ Stay Informed with Team Karyn O'Dea
Team Karyn O'Dea is here to help guide you through these shifting market conditions, whether youâre buying, selling, or investing. With our deep knowledge of the local market and expertise in real estate trends, weâre equipped to provide personalized advice to help you achieve your goals.
Stay tuned for more updates as the property market continues to evolve, and feel free to reach out for tailored insights and guidance.