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