A tale of two property markets
There are two different property markets at the moment.
Market 1 is made up of properties that are more desirable, highly competitive and increasing in value at a faster rate. They have gone up in value by about 5 – 10 percent.
Market 2 is made up of properties that are not as desirable, not as competitive and aren’t going up in value so quickly. They have gone up in value by about 1 – 5 percent.
So, what’s the difference between the properties in Market 1 and Market 2?
The properties in Market 1 are larger in size and positioned in a quiet yet convenient street, so they’re peaceful yet close to transport, shops and eateries. An example of this would be a generously sized two-bedroom apartment in a desirable street.
The properties in Market 2 are smaller in size and positioned in a noisier and less convenient street. An example would be an average to small sized one-bedroom apartment on a main road.
As more people are now working from home at least a few days a week, properties that offer plenty of space, peace and privacy are more sought-after.
But now is actually a great time to buy one of the less desirable properties for a reasonable price. If you don’t work from home and don’t need as much space, peace and privacy as those who do, you’ll be competing with fewer buyers.
In a year’s time when interest rates are likely to decrease, there’s a good chance you’ll look back and wish you’d bought in 2024 when prices were stable.
