As has been heavily publicised, there is no denying that the fastest interest rate rise on record and now the highest rates since 2013 have impacted the property market and resulted in a notable decline. However, the majority of the unit and townhouse market, particularly those products in an affordability range of $600,000 or less, continue to see strong results.

Predicting where the property market is set to go would certainly be a bold move given some of the most esteemed property economists predicted a market crash at the beginning of the pandemic, only to be followed by the steepest trajectory of growth in recent times. However, despite seeing an adjustment to that growth now taking place, it is evident over the past months that the properties that remain more affordable are continuing to see strong demand.

The major driver of any market, and the last two years being no exception, is greater demand than supply. Therefore, given we continue to see 10-20 groups at initial open homes for properties under a $600,000 search range, offers being received after 1 open home in line with seller expectation and listings going under offer within 7 days of being advertised, showcases just how many genuine buyers are still active for this product.

It is not unfair to assume that more buyers are adjusting their search into this price range than out of it, and I believe this is reflected by the consistent enquiry numbers being experienced on such properties. It is also true that higher interest rates affect those buyers lending higher amounts more due to the size of the repayments which would support the above statements.

We have experienced capital growth in the unit and townhouse market in the last 18 months that we hadn’t seen in over 10 years and this was on the back of the housing market boom. Acknowledging that there was a slight delay in the growth flowing down to the units and townhouses is important as it is yet to be seen whether this trend will be felt in the opposite direction.

Have we reached the top of the growth period for units? As mentioned, you would be bold to make any predictions given the recent volatility, but it is fair to assume if we are asking the question, it cannot be far away. Trying to time the market is never a good idea, but selling close to the peak is most certainly better than trying to sell as the market is on the way down. Anyone selling a free-standing house in the last 6 months can attest to that.

So, if you are interested to know how your unit or townhouse is situated in the marketplace or you are currently considering selling, it would be advised given the information provided that now would be a good time to do so.

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