Listings across Sydney and Melbourne are up seven per cent and the number of settled sales increased six per cent when compared to the same period last year, with a bumper run to Christmas expected.
Suburbs in and around Brisbane, south and west of Sydney and within 20 kilometres of the Melbourne CBD are leading the demand, according to Angus Raine, chairman and CEO of Raine & Horne.
Mr Raine said the spring 2013 market was "very solid" and added that Sydney and Melbourne purchasing has "maintained the 2013 rage".
“The St George region in Sydney and the western suburbs are set to enjoy strong market conditions due to a combination of affordability and lower interest rates,” Mr Raine said.
Principal of Raine & Horne Sans Souci Ray Fadel said typical buyers around the area include investors, self-managed super funds and first timers. In western Sydney, colleague Peter Diamantidis said investors are "going nuts" for properties with granny flats. Mr Diamantidis said apartments with yields of between 6.5 per cent and 7 per cent are being snatched up by investors.
“Five months ago, plenty were tipping the market would slow but if anything it’s getting stronger… In our region, investors are going crazy for properties with granny flats and these are on the market for $460,000, and they can return $630 per week, which represents a gross yield of more than seven per cent,” Mr Diamantidis said.
“We’ve got studio apartments worth $190,000 which are renting for $250 a week.”
According to general manager of Raine & Horne Queensland Steve Worrad, southern investors are increasingly in competition with locals for property, as they attempt to test the waters of the current property market.
“In Queensland, Raine & Horne has recorded a surge in listings of 47 per cent compared to this time last year, and this can be attributed to plenty of Queensland owners recognising there is more life in the property market than nine months ago, and they’re now testing the waters by putting their properties up for sale,” he said.