Thinking of selling your property soon? You’re not alone, with new research from big four bank, Westpac, finding four in ten (39 per cent) of homeowners surveyed intended to sell in the next five years.
According to Westpac, the rate of Australians looking to sell increased by 9 per cent from November 2020. The results are unsurprising given the significant momentum property values have made in the year since COVID-19 hit our shores.
In fact,CoreLogic data from earlier this week found the portion of profit-making resales between January and March increased to 90.3 per cent nationally – up from 89.1 per cent the previous quarter.
In May alone, CoreLogic’s national Home Value Index increased by 2.2 per cent. Sydney property prices increased 2.97 per cent and 11.16 per cent year-on-year. Hobart topped the monthly growth figures at 3 per cent, with a year-on-year value growth of 16.52 per cent.
It’s clear that the current state of the property market makes selling right now an interesting prospect.
Downsizing and regional moves still popular
However, not all seller intentions can be pinned down to looking to capitalise on the current value growth. Westpac’s report found a growing number of homeowners were looking to downsize, with 26 per cent hoping to nab a smaller property.
Westpac’s Managing Director of Mortgages, Anthony Hughes, said: “Our research shows that while buying intentions have tapered slightly, demand still remains stronger than it did prior to the pandemic, reinforcing that the great Aussie dream of owning a home continues to remain a priority.”
“In welcome news for buyers, the report also found more people are now thinking about selling. This is largely being driven by confidence in getting a good return on their home, as well as an increasing desire to live in a new area as people seek more living space.”
The new Westpac figures may mean good news for new buyers struggling with supply and demand issues for property. Westpac reported that one of the biggest barriers to purchasing property right now appears to be competition with other buyers (43 per cent), with 29 per cent also citing ‘a lack of listed options’ as a barrier.
“Properties further from the city boasting backyards and a more relaxed lifestyle remain top of mind for buyers, and for the first time, more homeowners are telling us increased infrastructure and amenities in their desired area is also motivating them to sell, with public transport, local shops and parks ranking as the most desirable suburban features,” he said.
Regional areas across the country have seen significant increases in migration from those looking for a sea- or tree-change, particularly due to COVID-19 work-from-home flexibilities. But movement into regional Australia is not unique to right now, with REI data showing 1.2 million Aussies moved into regional Australia, or moved around regional Australia, between 2011 and 2016.
Yesterday, Regional Australia Institute and Commonwealth Bank released data showing the Gold Coast was the most popular destination among “metro-movers” - those migrating out of capital cities – during the March 2021 quarter. This was followed by the Sunshine Coast (QLD), Greater Geelong (VIC) and Wollongong (NSW).
Top areas likely to list in the next six months
According to the Westpac report, the suburbs most likely to put a property on the market across the nations’ capital cities include:
|Sydney||Avalon Beach||St Ives|
|Perth||Mosman Park||Hamilton Hill|
Source: Westpac Likelihood to List June 2021.
“Areas featured on the list offer a diverse range of living options for prospective buyers that also cater to the changing preferences we’ve seen since the start of the pandemic, including stronger demand for more space through a dedicated study or spare bedroom as many continue to work from home,” said Mr Hughes.
“Buyers can also consider areas that are poised to have units come onto the market. Newly developed suburbs like Sydney’s Wentworth Point or established areas like Adelaide’s Glenelg can be appealing with waterside living options, as well as access to restaurants, recreational facilities, and transport.”
- Considering selling your property soon? Want to know more about a home you’re thinking of buying? Learn the value of a property with RateCity’s free property value estimate today.