Residential Clock
Residential Clock for Housing Markets. Image – supplied
  • It's boom time in all residential housing markets
  • It's the same story for units, but a mixed picture in retail
  • There are some places for bargains, and this could include retail

All residential property markets are now in the ‘rising-to-peaking’ sector of the cycle, according to the latest monthly report from Herron Todd White.

Six housing markets have already hit their peak, according to the analysis, whereas the rest are rising towards the top of the cycle.

The main image (above) shows the hot property markets for houses, and below, it’s a similar picture for units, except for Canberra, which has a falling unit market:

Units property clock
Image supplied

Retail

The property clock for commercial retail showed a more mixed picture, however:

 

Retail-property-clock
Source: supplied

The report highlighted some areas within retail which were doing well:

  • Sydney – a good appetite exists for certain neighbourhood retail strip shopping investments;
  • Brisbane – limited listings have kept prices buoyant for neighbourhood centres;
  • Darwin – the city’s ‘Bali-alternative’ tourism appeal has boosted waterfront retail prospects.

Can retail property survive the lockdowns?

Retail property as an investment has proved surprisingly resilient, with prices holding
up across many asset types despite the ongoing trials, says the report.

Angeline Mann, Commercial Director of Herron Todd White Sydney, said her city’s latest lockdown is challenging, but previous experience suggests retail will rebound once doors reopen.

“Things certainly improved this year compared to last year. Just before this current lockdown, you couldn’t get a restaurant reservation in Sydney. Of course, it’s a very industry specific resilience. Cafés and restaurants bounced back well, but businesses
such as travel agents continue to struggle.”

Ms Mann said many operators learned valuable lessons in 2020 that are helping them weather this 2021 lockdown.

“I live in the inner-city and in the very first lockdown, all the restaurants closed straight away – and then it took them four weeks or so to work out how they could do click-and-collect or Uber Eats. In this most recent lockdown, they were all up and operating with deliveries within days.”

~~

Before making any financial decisions, please do your own independent research, taking into account your own situation. This article does not purport to provide financial or taxation advice. See our Terms of Use.

You May Also Like

Melbourne median house price jumps to highest level ever

REIV has recorded a sharp 9.5 percent increase to Melbourne median house prices

National property market in clear recovery mode: Core Logic

As we move into 2021, the property market is showing positive signs…

2020 in Review: Darwin

Despite having previously been in the middle of a correction, Darwin has bounced back to have the highest level of growth in any capital city since the Covid-19 Pandemic began.

$35m of Gold Coast property sold at auction event “best ever”: Ray White Surfers Paradise CEO

315 registered bidders over the weekend attended the highly successful auction event…