Property market sees improvement

Property market sees improvement

August 2015 | Wai Lin Coultas

THE PROPERTY market in Meander Valley has picked up substantially over the course of this year.

Daryl Smith, Business Owner and Director of Harcourts Real Estate Deloraine and Meander Valley, says his office has seen a 20% increase in sales of both residential and rural lifestyle properties this year, beginning in January.

He adds that even though the Meander Valley has a diverse range of property groups and price ranges, “all buyer groups have seen significant interest, with the lower bracket of $200,000 to $250,000 being the fastest moving segment of the market, in both town and village residential, and lifestyle rural, small acreage.”

Brian Claridge, Director and Sales Consultant at First National Real Estate Deloraine, has “seen an increase
of 30% in commercial, residential and rural properties in the last financial year.”

He adds, “All types of housing have shown an increase in buyer enquiry. Enquiry for commercial is limited with few people willing to invest; the main criteria (for securing sales) is secure tenancies in place.”

Moreover, Mr. Claridge finds “the extra business created is translating into a consistent cash flow for his agency, with settlement times varying from 30 days to 9 months.”

Mr Smith attributes these escalating sales to “a combination of low interest rates, greater buyer confidence, a more stable state and federal government but, more importantly, more realistic pricing from vendors.”

Mr Claridge agrees, “the increase in sales can be attributed to correct pricing of property. Buyers are aware of previous sales of both individual properties and sales in the area.” He adds, “the historically low interest rates are assisting with investor interest. However, they are not translating as the driver for residential sales.”

All these factors have brought to Harcourts Deloraine, buyers with profiles that “change with each micro area of the Meander Valley.”

“Deloraine has almost a 90% interstate buyer market,” says Mr Smith. “Westbury has only a 30% share of this market, with the remainder being Greater Launceston (at) 30%, and existing locals are the remaining third.”

At First National Deloraine, Mr Claridge finds “buyer profiles are across the board; from first home buyers to professional investors and business people.”

Mr Smith believes that this increase in property sales will continue through the winter as “…June and early July are busy times… with June recording record sales figures on some occasions.”

He assures that, “while not at a record run this winter, it is shaping up to be a brisk property-trading period, with good sales in the first three weeks of the winter season.”

Mr Claridge concludes, “The overall main street business area is buzzing with confidence with arrival in town of new investment and new owners. The doom and gloom appears to have run its course. I am confident we will continue to see an improvement in property sales as we go into 2016.”