Where will the buyers be in 2010?

The smart agent should always be looking to list stock that matches hot buyer activity. In 2009 this space was largely dominated by first time home buyers (given the well publicised FHOG), but what buyer groups are set to be hot in 2010?

A recent survey from the Bureau of Statistics and RP Data confirmed that upgraders are most likely to be the largest buyer group in 2010, along with an increase in investor activity.

The ABS Housing Mobility Survey suggests that a massive 45% of Australian home owners feel their homes are too small. The survey was conducted when interest rates were twice today’s levels, and upgrading was not as financially viable for many home owners, but with interest rates now significantly lower (despite the three recent small increases) it’s no wonder that upgraders are predicted to be very active in 2010.

So what do these buyers want? In addition to a bigger property, they also want a better quality property that is close to shops, cafes and transport and in a quieter location with better security.

Investors are also likely to also be in the marketplace in high numbers next year. The same survey also revealed the main reasons tenants are unhappy with their current homes: poor condition, lack of security, noise levels, traffic levels and not being close enough to shops and transport. In addition, 25% complained their property was too cold.

In short, tidy properties that are secure, on a quiet street (but still close to local amenities), preferably north facing (with light, bright living spaces, balconies and backyards) and within 15kms of a major CBD will be like gold dust in 2010, as smart investors should flock to them like bees around a honey pot.

Best of luck for 2010.

ABS, RP Data

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About Pete Richards

Pete Richards is Head of Marketing for McGrath Estate Agents, and has been operating as a marketing specialist within the professional services sector since 1997, despite originally qualifying as a Mechanical Engineer. Pete joined McGrath in 2007, having previously held senior marketing roles within the recruitment and HR outsourcing sector, both in Australia and Europe.

One Response to Where will the buyers be in 2010?

  1. Peter Ricci January 15, 2010 at 9:57 am #

    We all know my feelings on property prices. I have always said that great properties will always increase in price over time.

    As long as everything stays steady in Asia I cannot see any real blips in the market.

    Some will argue that shortages will drive up prices, but with banks being tighter, fewer jobs and people understand a little better what they can and cannot afford I cannot see average prices rising too much.

    Any blips and it will go the other way and for agents any long term trends south will be a good thing!

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