The current conditions in one property segment will likely remain favourable for would-be investors, according to the quarterly review from RPM Real Estate Group.
Land is going to be a good investment vehicle for investors planning to have a slice of the state's property market, said Lynn Nie, division manager at RPM. Investing in land, as Nie puts it, is a long-term investment strategy, especially given the current situation of the rental market.
"By the time the investment property is ready to lease, international travel should be moving back to normal, or at least the 'new normal'," she said.
The onset of the COVID-19 outbreak in March has already softened investors' share of overall lot sales. In fact, investor lot sales accounted for only 23% of overall turnout in the March quarter and 15% in the June quarter.
While it remains a favourable time for investors to buy land, they will likely face competition from owner-occupiers who have plans to take advantage of the HomeBuilder scheme.
"Nevertheless, for those investors who do buy during the coming months, it is likely to be an excellent investment in the medium term given the current low lending rates projected to remain for years, and the large number of available lots on the market," Nie said.
|
Area |
Property Type |
State |
Median Price |
Quarterly Growth |
12 month Growth |
Weekly Median Advertised Rent |
Gross Rental Yield |
|
Metro |
Houses |
VIC |
$741,500 |
1.2% |
3.6% |
$420 |
3.0% |
|
Metro |
Units |
VIC |
$590,000 |
1.8% |
8.4% |
$410 |
3.7% |
|
Country |
Houses |
VIC |
$380,000 |
0.3% |
5.8% |
$340 |
4.6% |
|
Country |
Units |
VIC |
$300,000 |
1.7% |
10.1% |
$280 |
4.9% |
Source: CoreLogic, August 2020
