top of page

Treak Real Estate Property Update: July/August


Welcome to the Treak Real Estate Property Update: our regular round-up of news from the Sydney and national property markets, as well as what’s happening right here at Treak!


Happy 1st birthday to us!


It’s time for some cake!


We’ve officially been in business for 12 months, and we’re the happiest one year old you’ll ever see. While opening a business during COVID was a significant challenge, it’s been a super exciting and rewarding journey so far. It’s been a year of firsts, including our first lease, first management, first sale and first property purchase as a buyer’s agent.


We also recently took on our first employee – John Tzineris. John has been working in the property industry for quite a while, and is currently studying for his real estate licence. He brings extensive experience in customer management, something that we at Treak hold particularly dear. We’re looking forward to what John will bring to the team in the future!

Some highlights from the last year:


  • We launched Real Estate for Good, an initiative that drives a percentage of our profits into charitable causes. As part of this program, we walked 29km from La Perouse to Watsons Bay for homelessness.

  • We purchased many properties for clients, including recent acquisitions in Redfern, Dulwich Hill and Marrickville.

  • We leased properties in Sydney’s inner west and eastern suburbs (our last three properties were filled in less than a week!)

  • We’ve so far earned a five-star rating on Google across 11 reviews!

Great experience throughout all aspects of my dealings with Treak Real Estate. Highly recommended, provided a superior and professional service at all times.” – Jon Fentiman (tenant)


[Renae] operates ethically, is easy going, very composed and will help you to feel reassured throughout a process that is stressful for most people. She has to be Sydney's best buyer’s agent!” – Annabelle Chee (buyer)


This agent worked miracles! Let my place within a couple of weeks – between Christmas and New Year’s Eve! – where my old agent hadn’t managed to let it for 4 months! Great professionalism, great communication, great service. Competent and trustworthy. Highly recommended.” – Silvia (landlord)


What’s a birthday without presents?


Just as you have thanked us for our support, we’d like to thank you for yours.

To celebrate our birthday, we’d like to offer all new clients three months of free property management!


Why not come on board and see what all the fuss is about? We pride ourselves on delivering high-end property management services, which feature:

  • A flat $500 letting fee (click here for full pricing details)

  • FREE signboards and lease renewals

  • An owner web portal where you can access property and financial information 24/7

Ready to save hundreds, perhaps even thousands of dollars every year? Make the switch today!


Turbulent times: a look at a property market in lockdown


Our August property market and economic snapshot:

  • Despite regular and continued lockdowns, Sydney property prices are still expected to rise by 24% this year.

  • While oversupply is leading to lower apartment rents, rents as a whole are rising.

  • The record low cash rate of 0.1% looks as though it’ll be around for a while.

  • Tougher lending limits may be used in coming months to reduce investor lending.

Has the Sydney lockdown affected property prices?


There has been minimal slow down of the Sydney property market through lockdown. Confidence is high due to low interest rates, and Sydneysiders are paying big prices for large homes in lifestyle locations near parks and beaches. If we see an extended lockdown this rate of price growth could slow, certainly, but most likely won’t fall.


This confidence isn’t being felt across the board however. While house sellers are enjoying incredible interest levels and fetching fantastic prices, the same can’t be said for single-asset apartment sellers, who aren’t hitting the market at the same rate this month.


How high will house prices go?


According to CBA economists, national prices are likely to jump a total of 20% this year, and a further 7% in 2022, when affordability constraints are predicted to slow the pace of growth. Sydney is expected to post the biggest 2021 increase of all capital cities – 24% – though most of these gains have already come to pass, thanks to the exceptional performance we saw at the beginning of the year.


While CBA have said that the NSW economy is in the midst of a large negative economic shock, they expect the housing market to be largely unaffected. While the shock will be severe, people understand that it will be short lived, with the economy likely to bounce back once the lockdown is over.


Apartment oversupply leading to lower rents


A significant oversupply in the apartment market, caused by a lack of international students and visitors, is leading to rents being pulled down. Nonetheless, when houses are added to the mix the NAB’s latest Property Survey forecasts that rents will increase by 2.5% in the next 12 months, and 3.1% over the next two years.


Cash rate on hold, tougher lending restrictions to come


The record low cash rate of 0.1% remains, and it’s not likely to change any time soon.

With the Delta variant of COVID-19 wreaking havoc across Australia, the RBA has acknowledged Australia's economy is likely to move into reverse through the September quarter. The conditions for a rate hike are still a long way off being met, such as a sustained inflation rate of 2-3%, sustained wage growth of above 3%, and something approaching full employment.


The low rate has seen investor lending soar, and ANZ are predicting tougher lending limits to be imposed within the next few months as a result. Regulators will likely choose more than one restriction to cool the market, depending on how lending evolves.


Get in touch today!


Realising success in the property market is about drawing insights from information – which is what we at Treak do every day! If you’re looking to strengthen your financial position during lockdown, be sure to get in touch, or simply hit ‘reply’.


We look forward to chatting soon!


Comentarios


bottom of page