The property prices in Newcastle look to benefit even more from the current COVID lockdown.
Because of the restrictions, people can no longer spend money on restaurants, bars or international travels. People are spending more time in their homes and research shows time searching for homes and investment opportunities is on the increase. This could push home values even more.
For most of last year, prices were driven more by owner-occupiers and not so much by investors. But as this years lockdowns continue, more and more investors are returning to the market. One of the driving influencers is because investors tend to purchase properties without seeing it and base their interest on numbers. And the rental return numbers are going up making it more enticing. Meanwhile, homeowners prefer to check out the property because they want to reside in it.
The ‘saver effect’ (saving and not spending) was felt significantly towards the end of 2020 and in the early days of 2021, when home prices soared to record levels. Then in June, Greater Sydney went back into lockdown and Newcastle followed weeks later. Because of these current lockdowns, it is anticipated that people are still saving and are looking to spend on property.
People’s outlook towards property is generally more positive than other forms of investing, especially for those who have had earnings, who had been able to save since the pandemic began and all due to the fact that they hadn’t taken holidays abroad, haven’t travelled interstate and have not spent on entertainment.
They are looking at where their life is currently: some are going into investment properties and others are purchasing in regional or coastal suburbs because they desire a lifestyle change.
People are checking their money and thinking of what to spend it on and a lot of them are looking at Newcastle.
If you want to know what your property is worth in the current market, call Annette Pinkerton today!