PropertyBuzz, your daily dose of property news.
Investors are on the lookout for regional retail returns; Economists look ahead at what the latest inflation data means for consumers, and the tricky art of judging the bottom of the market.
Welcome to Property Buzz! Today is Friday, 02 February.
Commercial assets in coastal locales are netting good returns, as a recent sale in New South Wales exemplified.
– A premium retail asset in Inverloch recently sold for $1.53 million netting a price that was 22 per cent above its $1.25 million reserve. The property is currently leased to a pizzeria and a beauty salon.
– The sale attracted 92 enquiries and 14 registered buyers, showing that investors are paying attention to retail opportunities in lifestyle locations.
– Two hours from Melbourne CBD, the town’s population swells from 6,500 to over 25,000 during the summer season, welcoming visitors with vacation money to spend. Investors are betting on that retail support to underpin their regional investments.
– And with the Consumer Price Index dropping to 4.1 per cent over the 12 months to December 2023, economic analysts are looking ahead to predict how this might impact economic factors across the country.
– RateCity research director, Sally Tindall, called the inflation data “fantastic news,” suggesting that Australians can now breathe a small sigh of relief.
– Still, Tindall advised borrowers to continue budgeting carefully and reinvest any savings from rate or tax cuts into their mortgages, but warned that cash rate cuts may take months to occur.
– And according to Melbourne-based commercial property firm Fitzroys, a cohort of commercial investors are “waiting in the wings”, looking for signs that the market has hit the bottom of the current cycle before they act.
-The cohort were described as “astute, counter-cyclical investors”, who are starting to emerge in order to take advantage of vendors who need to sell fast.
– But the firm noted that while some are still waiting to pounce, anticipating that better bargains are yet to be found, any hint of change in sentiment from the Reserve Bank is likely to make sellers more optimistic, and prices that they will accept today will be gone tomorrow.
That’s Property Buzz for today.
See you again tomorrow, 03 February, for your daily dose of Property Buzz.”