Attwood Marshall Lawyers Special Counsel Barry van Heerden looks at the biggest trends that will be keeping real estate agents busy, including a recent uptick in market activity and predictions for skyrocketing house prices.
Return to higher house prices
After a pronounced lull last year in the real estate market, house prices are once again on the rise.
The shock of the Reserve Bank of Australia’s new regime of interest rate rises appears to be abating, with Prop Track data showing that since a December low, national home prices have climbed 1.55 per cent. May marked the fifth consecutive month of price increases, and that trend looks set to continue.
The RBA began lifting interest rates for the first time in a decade in May last year, after house prices reached record highs. The subsequent downturn also came amid falling demand from buyers.
While prices are still 2.6 per cent below their peak, housing demand is far stronger than it was by the end of last year – prodded by a tighter rental market and, for places like the Gold Coast, strong migration since the pandemic.
Indeed, many market players believe that Gold Coast prices will likely remain stable over the coming months. PRD recently forecast that based on recent growth rates, local house prices on the Gold Coast could more than double by 2030, with the price of a typical house skyrocketing to $2.7 million and unit prices averaging $978,000.
Meanwhile the cost of units in Coffs Harbour, NSW, has outpaced every other region in Australia over the first quarter of 2023. The 16 per cent growth that the Domain House Price Report has recorded for Coffs Harbour has been put down to improved infrastructure and more people from regional areas buying a second home in the coastal town.
Rising migration adding to market activity
The data is there: despite the doom and gloom associated with rising interest rates, the housing market is in recovery mode. Auction houses are recording great clearance rates, with capital cities selling more properties at auctions than they have in years.
At the beginning of June, Ray White held Queensland’s biggest online auction event, with 2,020 viewers tuning in online for the presentation of 54 properties across Gold Coast and west Brisbane. The agency said that its chief auctioneer took 566 bids during the event, which had a clearance rate of 75 per cent on the day and was expected to go above 80 per cent two days afterwards.
Many of the participants of the online auction were from interstate – which is increasingly becoming a regular feature of a property sale as individuals, couples and families chase a new way of life post-pandemic. There has also been a surge in net overseas migration into Australia, which is impacting housing demand.
Queensland’s population has grown by over 100,000 in the past 12 months, with predictions that it could reach 7 million by 2046 as more and more people are drawn to Gold Coast and Brisbane that offer all the benefits of city life with the added bonuses of better weather and a more laidback lifestyle. Regional towns in the Sunshine State are also predicted to grow as more people seek them out for their affordability.
Agents with a role to play
Agents may have noticed an uptick in their workloads – and no doubt, be thankful for it. The market is slowing filling once again with first-time buyers (increasingly with the help of Mum and Dad), serial property flippers, sophisticated foreign investors – and a newer trend: more and more Australian families moving interstate.
Buyers who are interstate would have no or very little knowledge of the local market, and so it is in their best interest to receive competent legal advice before committing themselves to signing a contract.
This is an area we are seeing more people lean on property lawyers for advice as they buy or sell in a different market and try to navigate the cross-jurisdictional conveyancing nuances each state has to offer.
The sale of a property is for many people the biggest investment of their lives, and they will expect assurances that the contract will reach settlement without any hiccup.
Attwood Marshall Lawyers can provide this peace of mind by drafting appropriate special conditions for a contract, ensuring all issues are dealt with before it is signed. Our experienced property lawyers enjoy working with real estate agents, investors, buyers, and sellers to make sure all their property goals are achieved and that the transaction progresses and settles without any unexpected delay.
Attwood Marshall Lawyers – ready to help facilitate successful property transactions
With a dedicated team of property and commercial lawyers who practice exclusively in this area of law, our lawyers are able to assist real estate agents with providing a deep understanding of the legal framework governing real estate transactions. We can help you understand compliance requirements, current regulations, and the changing legal landscape to ensure you avoid legal pitfalls.
We take our role in a property transaction seriously, ensuring that there are no unexpected surprises for buyers and sellers, and no unnecessary delay to settlement. We also have a dedicated team of dispute resolution lawyers who can also assist should a dispute arise over a contract of sale, entitlements to commission, or property transaction.
For legal advice and support throughout the conveyancing process, please contact our Property and Commercial Department Manager, Jess Kimpton, on her direct line 07 5506 8214, mobile 0432 857 300, or email firstname.lastname@example.org
Our lawyers are available for appointments at all our conveniently located offices at Coolangatta, Robina Town Centre, Southport, Kingscliff, Brisbane, Sydney, and Melbourne.