Spring — A Stalled Seller’s Market

Spring may have sprung — but Australian property’s most important residential selling season has yet to bloom.

Despite well-documented records tumbling across the country the past 12 months, all eyes were set on spring and what September would deliver, especially given the moving lockdowns that framed the key metro markets of Sydney and Melbourne.

Predictions are often fraught with miscalculations, however with the end of lockdown now in sight for Sydneysiders and the wider country pushing towards an eventual ‘reopening’, what’s in-store for the remainder of the so-called selling season?

Adrian Kelly, president of the Real Estate Institute of Australia thinks that history is bound to repeat itself.

“Last year when the lockdown restrictions were lifted, all markets bounced back with a vengeance due to all the pent-up demand from being unable to list,” said Mr Kelly. “The same will happen this year as demand is still incredibly strong, coupled with low supply.”

Demand, he adds, continues to drive interest on the back of diminished stock levels.

“Despite the low interest rate environment, we aren’t seeing the usual new properties coming to market. In fact, spring listings are down by a staggering 20% across the county.”

Dr Andrew Wilson, chief economist My Housing Market, also believes in a market reset.

“They’re [lockdown measures] a bit like pressing the pause button on the market. What we do is understand where markets were prior to lockdown, where they were heading, and then once we get over the speed bump, understand that they’ll take off from where they were when the interruptions occurred,” said Dr Wilson.

Dr Andrew Wilson, chief economist of My Housing Market.

Not all markets are created equal and while Melbourne faces a taller task in returning to a level of ‘normality’ — with agents only recently able to again show properties in person — signs are positive.

after a slow start to spring the Melbourne market, with listing numbers reaching a recent low in the first week of September, the trend has surged 48.5% in the last rolling four-week count, according to CoreLogic, with restrictions on property inspections lifted.

A look at last weekend’s auctions results further heralds an ascendent return.

Despite a dramatic halving of listings — 269 auctions compared to the previous weekend’s 434 — Melbourne’s clearance rate remained strong at 79.3%.

According to My Housing Market, Sydney claimed a clearance rate of 85.2% — its eighth consecutive weekend over 80% — across 641 listings with a median sale price of $1,744,000 for houses sold at auction.

Dr Wilson believes a true Sydney surge, like that in the early part of this year, will be seen as the markets open up.

“As a consequence of a lot of buyer demand having been satisfied and affordability falling, we won’t see the same surge that we’ve had previously this year, but we’ll still see prices growth nonetheless,” said Dr Wilson

“We’re heading, if we finally get there, to sort of more of a normalised environment for house prices, which I believe will grow over the long-term at 3% to 4% a year in major markets [Sydney and Melbourne] even though we’re going to see a 25% increase at Sydney median this year.”

Despite the positive spring predictions and recent upticks, both key metro markets remain prohibitive for first home buyers. It’s a situation Dr Wilson only sees worsening, his data from My Housing Market claiming the number of first home buyers down the last six months in a row, from March to August, for the first time since the 2009 GFC recovery.

“First home buyers are virtually collapsing at the moment and they don’t have a number of those stimulus packages which were also helping them last year. They’re not as significant, those support packages for first home buyers, either at the national level or at the state level,” added Dr Wilson.

As for the shadow cast by talk of a recession? Mr Kelly points to such previously being overcome.

“There is a big difference with the recession we saw during the GFC to the recession we may see this year. And that is that the GFC at the time didn’t seem to have any end date, hence the uncertainty. This time around, we can see an end date approaching of sorts and that obviously revolves around vaccination rates and lifting of restrictions,” said Mr Kelly.

Adrian Kelly, president of the Real Estate Institue of Australia.

While Dr Wilson agrees in regards to the strength of the property market he concedes there’s little government intervention to offset the effect of an economic downturn.

“We’re certainly closer to a real type of recession over that because we’ve got two big economies in Sydney and Melbourne involved this time… We don’t have the same level of stimulus from the government to offset it [recession]. Economic downturns don’t really affect the housing market. Now, the reason behind that is because they’re usually offset by stimulus in monetary policy.”

For Mr Kelly, the advice upon entering what is the property market’s most important season is to research heavily, have finance approved and not fear looking further afield.

For Dr Wilson, a more cautious approach is recommended.

“It’s still a seller’s market. And the data continues to show us that … sure, there aren’t as many buyers around. But at the same token, there aren’t as many sellers around to force competition.

reia.com.au / myhousingmarket.com.au

Curb appeal—the attractiveness of one’s property—is everything when deciding to sell, rent, or simply add value to your home. That’s why Australians spend approximately $1 billion per year on property renovations.

“I am seeing smart investors and homebuyers now actively looking to upgrade, capitalising on opportunities in the market,” said Nunzio Bagnato, consultant at Homebuyers Centre Victoria. “It’s no longer just about looking for a specific price point; buyers are willing to pay extra for quality.”

From strategic renovations to expert upgrades, there are many ways in which you can add value to your property, no matter your budget. Whether you’re a seasoned investor looking to maximise returns, or a savvy homeowner wanting to spruce up your living space, look to these 10 ideas for maximising your home’s aesthetic and appeal…and in the process, add value to your property.

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1). A fresh paint job goes a long way

A fresh coat of paint applied to tired walls, whether on the exterior or interior, can do wonders for your home says interior designer and stylist, Jono Fleming.

“Give your space a makeover with paint to create a fresh and elevated look. This is an accessible tool to introduce colour into your home, which serves to transform the mood and feeling of a space,” he says.

“Colour is an incredibly powerful design tool, however itʼs incredibly important that the end result feels grounded and draws people into the space. I recently refreshed a bedroom in my family’s farmhouse using Fantan and Canyon Cloud from the 2024 Dulux Colour Forecast Muse palette, which has converted the space into a vibrant retreat filled with warmth and new life.”

Besides the obvious — paint acts as a protective barrier against the elements such as rain, UV rays, and moisture — a fresh paint job can immediately add value to your home. If you have some minor imperfections, such as cracks or dents, spend some time on prep before you paint for a better finish and a more durable result. For exteriors, lighter colours are a surefire winner.

“There’s a lot of interest generated from colours; a neutral palette appeals to a broader range of buyers,” says Mr Bagnato.

2). Landscape the garden

A well-kept, manicured garden can add thousands of dollars to the value of your home. If we learned nothing from the pandemic, it’s the value of a private, well-designed outdoor area. Spending time on landscaping your front garden will not only enhance street appeal, but can also increase the functionality providing areas for relaxation, entertaining, and recreational purposes across the site.

A well-designed garden including green space, paved areas, room for entertaining and water features, can also increase your property value by up to 20 percent, according to a study conducted by the University of Western Australia. For smaller areas such as apartments or townhomes, consider seeking help from a gardening specialist who can advise on the best pots, plants and flowers depending on the orientation and soil type of your garden.

3). Your home’s facade says a lot

The very first thing that people will see when looking to purchase their next property is the facade. Even when people are searching online, it’s often the very first image shown on a listing, and one that can make or break a property in a matter of seconds. A visually appealing frontage can set your home apart from neighbours, and can really set the tone for what visitors, future buyers, or investors can expect when they walk through the door.

Patrick Cooney, director of sales at Melbourne-based Milieu Property, agrees that the facade of a home leaves people wanting more.

“The vast majority of people only ever get to see and experience the exterior of a building,” he says. “This is an advertisement for those who walk and drive past. Having amazing architecture and landscaping leaves people wanting to know more.”

4). Who doesn’t love new flooring?

It’s always immediately apparent when a vendor has spent the time and money upgrading their home’s flooring. Besides changing the look and feel of your interiors, investing in high-quality flooring materials, such as sustainable wooden floorboards for common areas such as your living and dining space, and carpet for bedrooms, can immediately increase the perceived value of your home.

One factor to keep in mind is that upgrading your flooring is not only a costly exercise but a disruptive one at that, so careful planning is encouraged.

5). Add that new kitchen

Should homeowners ever consider the need to renovate their homes, the kitchen is often top of the list. However small or large, adding a new kitchen to your home can do a lot for adding value to your home. Why? Recent studies conducted by OnePoll suggest that individuals spend over 1000 hours a year in their kitchen. Whether it’s preparing meals, eating meals, or working from the kitchen bench top, having a kitchen that is accessible, practical but also aesthetically pleasing is every home owner’s dream. Costs vary widely but be aware that there’s not a lot of economy of scale involved. Designing and installing a small kitchen often doesn’t cost significantly less than a larger one.

6). Consider art and furnishings

Another great way to elevate the look and feel of your home—and add value in the process—is through the addition of decorative pieces and furnishings.

“Art, display books and uniquely shaped vessels add interest and are an easy way to introduce colour, achieving a cohesive palette,” Mr Fleming says.

Avoid generic prints and go for something bolder, like vintage advertising posters to add personality to the room. Original art, sourced either directly from the artist, through galleries or at auction is a great way to add a luxe feel to a room. Beyond solid walls, Mr Fleming says window coverings can also benefit from the right dressing.

“Curtains, in particular, are often overlooked as an interior design tool, but theyʼre such an easy way to add colour to your space without it feeling too permanent and can completely change the ambiance or mood within a space.”

7). Upgrade your bathroom

After the kitchen, bathrooms are high on the priority list for buyers. If you’re planning on selling soon, you can make a considerable difference by taking small steps; replacing older sinks and toilets, upgraded hardware and new lighting can instantly transform your bathroom. If you’re planning to stay, or you’re keen to create that ‘wow’ factor for would-be buyers, opting for additions like a double vanity, walk-in shower, bathtub, or simply choosing premium materials such as marble or other natural stone, can all make a significant difference to the value of your home.

If you have more than one bathroom to renovate, consider mixing up materials and fittings while staying with the same colour palette for a cohesive look.

8). Be inventive, add storage

Storage—or the lack thereof—is something all homeowners have to deal with. For many first homebuyers or renters, storage is likely one of those additions worth its weight in gold. So, as a homeowner, adding thoughtful and meaningful storage solutions can go a long way in adding appeal to prospective buyers.

“Smart storage solutions can change one’s home from a nice home to a great home. The majority of people have a plethora of ‘stuff’ and finding a place for these are key,” said Mr Cooney.

“Whether its dropping off your keys and a dog lead in your welcome station by the front door, to having an appliance nook for your coffee machine and toaster, or ensuing you have the basics like adequate bathroom storage that accommodate a hair dryer, these are all incredibly important considerations.”

9). Is your home ‘smart’?

Integrating ‘smart’ technology is something we’re likely to see more homeowners do. While the outlay and time spent in setting up a smart home can deter some, considering things like integrated security systems, sensor blinds, keyless entry systems, smart lighting controlled via your phone, and indoor/outdoor entertainment systems can appeal to tech-savvy buyers (and ultimately increase your property’s value).

“Smart tech for the home can be pushed as far as people are wanting. At Milieu, we generally now include smart locks, smart parcel lockers, energy monitoring and number plate recognition access to basements to our new developments,” said Mr Cooney.

“In our last three projects, we have specified VZug appliances which can also be controlled from the touch of your phone.”

10). Sustainability is key

As we all look to add sustainable measures to our homes for a better, brighter, and greener future, energy efficiency in and around our homes will only become increasingly sought-after among home buyers. This can be done by installing solar panels or energy-efficient windows and doors, installing skylights, opting for appliances that save on power, and increasing ways that save on utility bills, like swapping gas for electric induction stovetops.

“Buyers are highly focused on sustainability and future-proofing their homes,” said Mr. Cooney. “Highly sustainable buildings, with EV provisions are key. People place a premium for sustainability and especially EV charging – the mindset has change from, ‘I may get an electric vehicle’ to ‘when I get an electric vehicle’.”

Adding an EV charging station, should you own a hybrid or electric vehicle, is a great initiative to consider for your home. Not only can an EV charging station power your vehicle, but its power can also be offset to power parts of your home.

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Spring — A Stalled Seller’s Market

Does the roadmap out of COVID mean spring selling will finally get underway?