Three Interior Trends to Watch out for in 2016

Bringing the Outdoors In

We are experimenting with how to bring nature into every aspect of their homes, from decorating compact apartments to expansive house backyards. Whether that be colourful blooms in vases in our studies or feature wall plants on our balcony. This can stop spaces from feeling clinical, after all natural is beautiful.

Sourcing Artisan Goods

Did somebody say crochet? Let’s embrace this trend, and support local finds. Don’t be afraid to mix vintage and artisanal items with mass produced goods. That basic side table from Target can now be paired with a Mongolian lambskin pouf and Moroccan rug.

Metallics and Metals

Brass, matte gold and metallic finishes are popular right now. It can give a high end, luxe feel. For example, a matte gold legged side table mixed with softer items such as a fur throw or a wing backed arm chair are the perfect pairs for 2016. Try not to mix different metal colours in one particular area as they will jar. 

Over Supply, Little Demand...

Working as a South Yarra Property Manager for a high end Developer in 2012, I saw the rush of sky rises being erected. Each and every possible space along Chapel Street Become a "Boutique" building. My favourite transformation was a car park along Clifton Street, Prahran. An apartment complex with the car park still surrounding the small complex seemed comical to me.

What wasn't so comical was the oversupply and little demand when it came to leasing. So many humongous buildings were being built with 80-200 apartments in them, so the prospects had too much choice. The finer details then came into play, did you have a pool, a gym, a library with free wifi, sauna or spa's with city views. No longer would a split system or dishwasher get the deal across the line, it was now an expected. Many first time investors or overseas investors were depending on you as property Manager to minimise the vacancies and get the perfect tenant.

No matter how lovely you’re professional photos were or competitively priced you were, the market was slow. I remember standing out the front of a property and thinking “I could hear a tumble weed go past”. If an online enquiry came through to my email, I would jump on the phone and professionally beg for them to make a private appointment with me. It was tough. Over the 12 month period we had so many in one building that if prospects came to view one apartment and it wasn't suitable we would show them others on different levels. The average vacancy period were 6-8 weeks, I could almost finish Michelle Bridges body transformation in that time frame!

 When an application would finally come in via email, Property Managers would do a happy dance whilst making a proud announcement to their neighbouring colleagues 'I got an application'. They knew how hard it was to come by one and would shortly celebrate with you. No longer did we dread the call to the Landlord each week explaining that there was no result. I become a ninja reference checker in 2012, stalking past Property Managers and HR Departments until I got the all clear. The heavens would open and your mind would sing halleluiah whilst wiping that address off the White board. Now it seems this market has followed me to South Melbourne... Show, lease, eat repeat.

Is it too late to enter into the Melbourne Property Market…

How many times have people spoken about the property bubble that is going to pop? However, property prices have continued to rise each year. The only time it went down in the past 10 years was during the global crises. Even then people purchasing properties thought they were paying too much.  Now those properties have increased like no one ever expected.

I met with my mother in-law for a coffee and she expressed her concern for when her Grandchildren needed to buy property in 20-30 years’ time. She wish that she had a crystal ball tell her how much property prices would have risen, for she has purchased her family home in the 1980’s for $200,000. She went on to joke about how she should have bought streets of houses for her future family so they would never have to struggle.

So the ultimate answer to whether it’s too late to enter into the market is, no. Despite paying what seems high right now, paying 2016 house prices isn’t bad as that year will come and go. Buying a house is a long term commitment and your purchase price will be less than its worth in a matter of years. Investors who may have felt they paid top dollar in 2012, now don’t have that opinion in 2015. The trick to property is simply getting started.

Market Overview- November

With Christmas only 38 days away, you can almost smell a sense of urgency from people who are desperate to buy into the property market this year.

 For home owners that want to buy this side of Christmas, you only have 4 weeks’ worth of auctions left to go before they are pushed out to mid-January. There has been heavy activity also within the private sale’s sector.  Families want to be settled before the 2016 school year commences.

If you are attending open houses, you will have seen an increase in people attending.  There is an average of 7 groups inspecting properties last Saturday. It makes it a very competitive market this time of the year. Potential bidders will need to have deep pockets if they want to secure their new property. New developments continue to be dominant in South Melbourne & the Spencer Street end of the city, causing property prices in these areas to stabilise .

Market Overview - September 2015

The market continues to go stronger than ever with the autumn rush pushing right through to June this year. The typical strong spring season has also started much earlier than usual, seeing clearance rates close to 100% in the past couple of weeks.

Local councils have been restricting Developers in sought after areas making these desired areas entry points very high. With low interest rates and a new generation more comfortable with debt than Gen X ever was, there have been no signs of market growth slowing down.

Historically low interest rates continue to push more renters into buyers and investors into growing portfolios. There are on averaged four bidders at each auction driving prices to strong end results. Offers prior to auction have also become a popular trend as purchasers are putting in firm offers that are taken seriously. This market is moving and shaking and if you find a suitable property its best to act fast as it would be suitable to others too. There is talk about a property bubble, but house prices continue to rise substantially.

 


Anastasia Chessum
Residential Property Manager
anastasiac@dixonkestles.com.au
0451 876 634