Wednesday, March 29, 2006

Is The Property Market Defying Gravity??

It has been an action packed March at Toop&Toop with our head office directly under the flight path of the F18's flying over the Clipsal 500 last week and with our fabulous win at the national awards this month.

In the coming weeks we have Easter and school holidays and from the look of the next month we won't see a blimp in the renewed vigour of real estate activity. In regards to Easter, we are encouraging our team to talk their home sellers into opening their properties during the break. We genuinely believe this is a great opportunity to capitalise on interstate and overseas investors. At the moment we are still scratching our heads as to what is driving this renewed level of activity - Maybe the all time record low vacancy rate of rental properties (just on 1%) holds the key in explaining this renewed interest in property.

So, is the property market defying gravity??

Many of our landlords have sold their rental properties and in doing so have helped create a shortage of available property for rent. For those investors who own residential property, recent reports out of Sydney indicate that rents across the nation have not only firmed up, but the trend is now upwards. If this continues it is entirely possible that it could kick start another round of price hikes in the real estate market. Should this occur it would be totally contrary to the standard real estate cycles experienced over the last 100 years. It should also be noted that interest rates are at an all time low and local competition in whatever field you choose to name is at an all time high. Perhaps all of the rules have changed because real estate is one of the essential assets that is home grown and has a constant local demand ... After all, shelter is a primary need for all of us.

So for all of the doubting Toms and for those who are heavily involved in property, at the moment we can say it is a big thumbs up.

For all of the investors ... go and buy some more property!!

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