Insights
Mentone/ Chelsea News – Summer 2022
December 5th 2022
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Selling with Hodges – State of the Market Summer 2022
Katrina O’Brien – Licensed Estate Agent
At the heart of every good relationship is great communication, and in this uncertain market it is imperative that there is a flow of information between a Real Estate Agent and their clients. I have always placed great importance in having those open and honest conversations with not only my vendors but also interested buyers, with the goal of finding their mutually agreeable ground.
With rising interest rates and an increased cost of living, along with the softening of house prices, there has been a shift in affordability when it comes to property purchases – in turn, the number of proactive buyers who are out on the hunt has reduced. Where one property may have once had 5-6 people willing to fight it out, now we are lucky to have 2 – and depending on where their budgets align, this is often not enough to get the best result in the public arena of a live auction.
It is easy to shy away from helping parties understand the realistic value of a home, be that guiding vendors to have achievable expectations or ensuring buyers know whether their budget could really win them the house. I believe a transparent approach brings about trust and a willingness to share – ultimately these negotiations increase the chance of a successful sale.
When the presentation of a home is right and the location speaks for itself, then its only down to getting the price right – and even when there are factors affecting the marketability, every home has its price, and it is vital that you get the price right the moment it hits the market.
If you would like to learn the market value of your home or are interested in selling, please don’t hesitate to get in touch.
Rental Property Report
Leanne Stahmer – Senior Property Manager
In recent years, the rental property market has been subject to more changes than ever before. It’s also been subjected to the most challenging external forces that it‘s ever experienced.
With the rollout of new regulations for landlords (totaling 144 changes), it has never been so important to make sure your rental property is well maintained; not only does this increase the rentability and ensure the comfort and safety of your tenants, but also will help ensure your property holds its sale price into the future.
In and around Mentone we are seeing a reduction in the number of properties on our books. Not only are the added responsibilities of the regulations contributing to this, but also the current market conditions where upwards pressure on interest rates and the increasing cost of living are leading many investors to turn away from property. Further factors affecting supply are that interest-only investment loans are no longer easy to obtain, thereby reducing the lending capacity for some borrowers. All combined, these influences have drastically changed the ratio of owner-occupiers to investors in the property market.
Due to COVID, the final compliance date for the new raft of regulations has been put back until March 2023 – Hodges’ team of Property Managers are available to guide you through any questions relating to the regulations and how you can ensure your property meets requirements.
Due to COVID, the final compliance date for the new raft of regulations has been put back until March 2023 – Hodges’ team of Property Managers are available to guide you through any questions relating to the regulations and how you can ensure your property meets requirements.
TOP 3 TIPS FOR SELLING & LEASING IN THE CURRENT MARKET
1. Set a realistic price expectation – factoring in higher interest rates and living costs for buyers and renters.
2. Maintain property presentation – the more liveable and comfortable a property is, the more desirable it is.
3. Exercise patience – if the price is fair and the presentation is there, buyers and quality tenants will eventually materialise.
Remember: People still need places to live. While the market is not as ‘hot’ as it was 12 months ago, housing prices in our area
remain solid. Quality properties remain viable investment options.
Commercial Report
Paul Johnston – Director / Commercial
The Bayside commercial market has been very busy in the past few months. Properties going to market with quality tenants and leases are still very attractive to investors, and they have been obtaining very good prices.
The rising interest rates have seen an increase in the yield curve demanded by many investors. Activity varies from suburb to suburb considerably – areas such as Black Rock and Chelsea have seen many freeholds sold in the past few months, both tenanted and vacant; while suburbs such as Mentone, Parkdale and Mordialloc have seen little turnover and remain tightly-held. As we face the headwinds of worldwide economic slowdowns, inflation and rising interest rates, we are seeing many retiring owners selling to release capital while purchasers are often superfunds seeking the security of property.
The commercial rental market has softened, and many strip shopping centres are seeing a rise in the number of vacant shops as trading conditions toughen and many businesses have no cash flow to fall back on after getting through the tough trading conditions faced during lockdowns.
Again, that varies with suburbs such as Hampton and Edithvale having quite a high number of vacancies, while other suburbs such as Parkdale and Mordialloc still have very few vacancies. Hopefully trading conditions will improve as we look to be near the top of the rate rising cycle and unemployment remains very low.
There is still reasonable demand for industrial properties in areas such as Mordialloc, Braeside and Seaford, Carrum Downs. Recent sales results have seen an increase in rates per square metre for commercial properties. Again, purchasers are often superfunds and owner occupiers, many of whom are not borrowers affected by interest rates, but instead looking for a better yield and potential capital growth not offered by a low yielding bank deposit.
Wishing everyone all the best for Christmas and we look forward to seeing you all in the new year.
10 Year Anniversary at Hodges
Vanessa Downey – Property Consultant
Earlier this month we were thrilled to celebrate property consultant Vanessa Downey’s 10th anniversary here at Hodges Mentone/Chelsea. A valued workmate and friend, Vanessa has experienced every imaginable property cycle since she stepped through the door at the height of the property market in 2012 and – luckily for us – she hasn’t looked back!
Working alongside director Andrew Plousi from the get-go, Vanessa has established strong and lasting relationships with not only her colleagues, but also her many loyal vendors and buyers.
Citing selling and campaign management as the most enjoyable parts of her job, Vanessa particularly relishes the camaraderie amongst the team at Hodges, with everyone working harmoniously and supporting each other at all times.
And how does Vanessa plan to celebrate her 10 years with us? When the time is right, she and her partner will head overseas for the trip of a lifetime!
Mentone Bowls Fundraiser
Get a team together and be quick to sign up for Mentone ‘Edge’ Bowling Club’s 58th Annual NABA Charity Day on Sunday 11th December.
The team at Hodges is proud to sponsor this fantastic event – Victoria’s longest running bowls charity event – and with a first prize of $1000 this is a tournament you do not want to miss!
Entry is $120 for four games x 10 ends with lunch included. All proceeds from the day will go to one of three charities – Vision Australia, Beyond Blue and Very Special Kids.
Starting at 9.30am and running for approximately four hours, this really is a fun day for everyone.
For further information please email info@mentoneedge.com.au
