Crikey. That’s not what we needed to read first thing on a Monday morning. The correlation between population growth and housing demand is relatively obvious but it’s tough to see in black and white the predicted potential impact of pandemic restrictions on migration on the bottom line of the residential property market. So, what are we looking at here?
Look, there is no doubt the numbers presented are sobering. Less migration to Australia and reduced numbers of international students do have real potential to impact rental returns for investors and in turn impact demand for existing residential property. Motivation to buy will be tempered, and the price potential investors are prepared to pay will be diluted, if the prospect of solid rental occupancy and returns aren’t there.
But whilst we have seen an inevitable adjustment taking place over recent months as tenants have made choices based on their changing financial commitments, we have clearly seen that demand from renters, and in turn from investors, has not disappeared. It’s down from the highs we have become accustomed to, but it hasn’t disappeared.
So, what we are looking at is the extraordinary ability of the Sydney residential property market to attract new interest if a void does become evident. Remember the intense angst felt at the prospect of losing the lucrative Chinese buyer market? When foreign buyer activity eased, we found very quickly a segment of domestic purchaser’s keen to capture the unfolding opportunities.
It’s a bit like that school science experiment where you fill a jar full of sand then watch as water finds a way to fill the gaps between the grains. When it comes to Sydney residential property there are always buyers ready and willing to fill the gaps in demand. You just have to understand the market, know where to look, how to price a property correctly, how to present a property at its premium and how to manage the process to achieve the best possible outcome.
In other words, you need to know what you’re doing. Success in real estate requires the art of negotiation and the science of execution. At Morton we have done the experiment many times over our 25 plus years in the business. We are well practiced at the art of negotiation and we understand the science behind how to fill the gaps to find the right buyers and the right properties at the right price for our clients.
So, while we wait eagerly for the pandemic to have passed and the borders to reopen we are helping clients seize good opportunities to secure a good place in the Sydney market now.