Research indicates that 2022 will see a higher demand for apartments across the nation, which will offer the most opportunities for property investors this year.
As international borders reopen, demand will rise, apartment vacancy rates will lower, and rents will increase. According to Westpac, reopening borders will result in more investors seeking quality apartments and enjoying more growth potential. “Both the lower entry point and higher yield profile may be an attractive option for investors as they become more active in the housing market,” Tim Lawless, CoreLogic Head of Research, reaffirmed the Westpac predictions.
The year is also expected to see a rise in demand for studio and one-bedroom apartments, again due to the return of skilled migrants and international students. Single-room units offer renters an affordable option close to the city, urban amenities and transport networks with more privacy than shared apartments, while property investors reap the rewards of high rental yield.
Recently, the RBA remained firm on the rate freeze for 2022. While there are some predictions that the RBA will raise the cash rate in Q3 2022, many expect this to be delayed until 2023 or 2024. The low interest rate adds more confidence for investors looking to purchase an apartment in inner-city locations before the spike in demand.