The year that was and the year to come in property

By Aoife Garvan

The budgets are in, COVID vaccines are out and all eyes and ears are on the property market for the next financial year (FY).

After what could only be described as an intense FY 2020/21, the Australian property market is signing off in June busier than ever before. Particularly in states like Western Australia – which has seen its sales settlements volumes skyrocket in the past six months alone.

Golden decade

Looking ahead, Jen Williams, QLD Deputy Executive Director of Property Council of Australia, proudly speaks about the golden decade in front of the state after Brisbane’s recent placement as one of the world’s top 10 most liveable cities.

“Being recognised as one of the most liveable cities in the world this year has set us up nicely to be seen internationally as a great city to live, work and play. Not only that but Queensland has been the beneficiary of increased interstate migration due to the impacts of COVID-19 in other states, a trend I foresee will continue into the new financial year. And with the Olympics ahead of us, a golden decade is certainly on track,” Williams said.

Jen is not the only industry leader with a positive outlook on our property market with the latest results from the ANZ/Property Council Survey revealing a surge in confidence levels in Queensland’s property sector, despite the slower than anticipated return of workers to major business precincts. The survey canvasses respondents such as owners, developers, agents, managers, consultants and government across all major industry sectors and regions.

“It’s encouraging to see that sentiment remains high despite the year that’s been and superb initiatives like Fridays in the City are starting to attract people back to Brisbane CBD, to support local businesses and to get teams bonding together again in person.

The one opportunity Queensland does have for the upcoming financial year is addressing the land supply issue and the low rental availability for its growing population. It’s the right time for Queensland’s own Build to Rent initiative, however Land Tax remains a huge hurdle to overcome for it to work.”

The year of homebuyers and investors

Moving south, Buyers Advocate, Dean Munro foresees a strong 12 months ahead for Melbourne’s property market.

“Government incentives will continue to support first homebuyers entering the Melbourne property market. This will go some way in supporting them against their main competitor, investors,” said Munro.

While government incentives continue, more investors will inevitably return to Melbourne once borders open and COVID vaccinations are rolled out fully.

“The limited supply of quality properties will increase demand and competition in the market, and low interest rates will push property prices even higher. People will be willing to pay premiums for the right suburbs within Melbourne, potentially driving first homebuyers outside of Greater Melbourne.”

Although last financial year saw a surge of homebuyers reaping the benefits of government incentives, CEO and President of REINSW, Leanne Pilkington, expects a more measured approach to come.

“After the last financial year, we should all be cautious in any predictions that we make, although in saying that we expect that the strength in the market will remain while interest rates remain low. The frenzy we saw during the early months of 2021 is likely to be replaced with more measured growth, slightly higher levels of stock and vendors with higher price expectations than previously.”

PEXA Insights | FY21 highlights

March saw more than 30K refinance transactions, the highest since June 2020. Queensland broke a 14-year property record in the third quarter of FY21, recording its highest third quarter property sales numbers since FY 2007.

Western Australia has been the front runner for growth in every month bar one throughout FY21, with May showing the highest year-onyear growth of 126.5% in transfers. Five states recorded double digit percentage growth year-on-year in February, March, April and May 2021.

Queensland broke a 14-year property record in the third quarter of FY21, recording its highest third quarter property sales numbers since FY 2007.

Five states recorded double digit percentage growth year-on-year in February, March, April and May 2021.