Tight market conditions can create opportunities

As rents rise due to increasing demand, the real estate world may become increasingly difficult for existing and prospective tenants. In fact, recent data released by RP Data-Rismark revealed that rental prices have increased by 3.3 per cent across all capital cities in the first seven months of 2012 – a trend that if continued, will likely see some tenants reconsidering their housing options.

The substantial yields that can result from a tight rental market may also be attractive to investors, who may want to make use of favourable market conditions. 

In the long term, increased rental demand could lead to further government concessions and stimulus measures within the property market and surrounding industries. We have recently seen the impact that government initiatives can have on property development, with building approvals rising by 27 per cent in May off the back of various grants and tax incentives.

How State and Federal governments choose to address housing supply issues will ultimately impact on the amount and types of properties that come onto the market. Given such, all agents should make a conscious effort to keep up-to-date with developments in government housing schemes and incentives, and illuminate the implications of such to their vendors, purchasers and tenants.

Posted by Reality Bytes - Real Estate Training Blog on 15/08/2012 at 3:17 PM | Categories:

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