Property market strong despite interest rates rise

Published 10:30am 7 July 2022

Property market strong despite interest rates rise
Words by Jodie Powell

The property market in the Moreton Bay Region remains buoyant despite the Reserve Bank posting three interest rate rises in a row.

Agents say while buyers are generally a little more cautious, demand for homes is still higher than supply.

The Reserve Bank of Australia announced on Tuesday it would lift interest rates by 50 basis points from 0.85 per cent to 1.35 per cent.

It was the third rise in three months

Crown Properties Redcliffe sales consultant Matt Burton says the market’s fairly resilient because buyers were likely expecting interest rates to increase.

“There’s every chance they may put interest rates up every month for the rest of the year,” Matt says.

“Even though there’s been three rises, the cash rate’s only gone up to 1.35 percent - we all knew the cash rate couldn’t stay at 0.1 percent forever.

More confidence

“Buyers felt they had to make a decision when they were standing in the property on a Saturday.

“That urgency’s come out and that’s not a bad thing because it’s giving you more choice in what you’re buying and a little more confidence in the product you’re buying.”

Matt says some of the activity is driven by people moving into the South East Queensland corridor and he is seeing more interest from investors, who had been unwilling to pit their money against owner/occupiers.

“Some of the cheaper suburbs like Deception Bay, Rothwell and Kippa-Ring are seeing a bit more interest from investors,” he says.

|“Any market is driven by supply and demand and supply is still quite low. It’s still a strong market.”|

Low housing stock

David Deane Real Estate Strathpine Principal Mark Rumsey says there’s been a noticeable dip in buyer activity in his patch, but interest is still strong.

“What we are monitoring is stock levels because that’s what’s helping - very low rental stock and low housing stock is helping preserve our market prices.

“Our area is still very cheap when you compare it to areas further in and that affordability factor is further going to preserve our market.

|“Good stock is still selling very quickly.”|

Popular with families

Richardson and Wrench Caboolture Principal Scott Lachmund says despite the quickest series of interest rates rises since 1994, the local real estate market is still going strong, thanks to the comparative affordability of properties in the region.

“Based on the affordability of family homes between $500,000 and $700,000 range, selling has been very active,” Scott says.

“But we have noticed exclusive stock over $1 million has been pretty slow in the past three weeks.”

Scott says Moreton Bay’s position and growth make it popular among people from interstate as well as locals moving within the region.

|“In Moreton Bay we’re still very lucky - we have affordability and location and job opportunities, which still puts us ahead of the pack.|

“Where else can you work and play with affordable options for either first home buyers or people downsizing?”

Lifestyle choice

Ray White Samford Selling Principal Brett Crompton says the volume of buyers has reduced – but that it’s not necessarily due to interest rate rises alone.

“This can also be a normal trait around tax time,” he says.

“But the quality of homes is still very high-end and quality buyers are still around.

“Interest rate rises, particularly out here, it’s not always a big deal - it takes a lot more than just interest rates rising (to put buyers off).

Brett says buyers seek out Samford and surrounds for the lifestyle and the growing variety of property, from traditional suburban blocks to smaller and larger acreage, is a huge part of the attraction.

“If there’s a budget of $2 million, you’re not going to have Hamilton, Ascot and then Samford on your list.

|“With Samford’s location and acreage, people are wanting to come here for a reason.|

“We have seen changes – where Samford used to be a sleepy country town, in the last 10 years it’s taken off to become more of a weekend destination – a mini Montville or Maleny and I think it’s good for the area.

“We have heaps of bus lines and we’re 10 minutes from a train station - buyers have the options.”

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