February Market Wrap
27 February 2015 Symon Badenoch
Mr Fluffy owners have started searching for new homes now that the ACT Government have begun the valuation process. I regularly get asked whether the increase in demand from these buyers will cause house prices to rise in the ACT Region.
The answer is YES but only in the suburbs where there are a large proportion of Mr Fluffy homes. We are finding most Mr Fluffy owners are wanting to purchase in the same suburb that they currently reside in and purchase similar sized homes to their previous home. They are not looking at moving to apartments or townhouses, and they are NOT looking to rent. We were expecting quite a few owners to potentially look at renting whilst they search for a new home, however it appears that this is not the case.
This extra demand from Mr Fluffy owners is coinciding with a natural increase in the market for demand in older houses in suburbs with larger size blocks. With all new suburbs consisting of smaller blocks to mid-sized blocks, we are seeing a large amount of buyers wanting to purchase old homes on the larger blocks in more established suburbs. This trend will set to continue in the coming years.
The ACT Rental market has remained stable for the first 2 months of 2015 and we are hopeful this will continue. The majority of property investors were disappointed with the outcome of 2014 however, we are hoping the building approvals on large complexes will begin to slow during 2015. This should in turn reduce the available stock in apartments and eventually slow the supply in the Canberra market.
At any stage if you wish to discuss the current market conditions feel free to contact our office.