With the trend of buying real estate sight unseen expected to continue its strong run beyond the pandemic, agents are recommended to get their tech on to get the best deal for their clients.
Data from Little Hinges revealed that out of 3 million virtual inspections tallied over a six-month period, interstate inspections represent 27 per cent of all property inspections around the country.
The trend of buying sight unseen has grown in popularity over the pandemic, as lockdowns and border restrictions motivated buyers to push the envelope when researching their next property buy.
And according to Little Hinges co-founder and chief executive Josh Callaghan, the latest data indicated that the trend won’t die down any time soon.
“We haven’t seen any drop in the number of interstate inspections since January, showing that the trend of buyers shopping outside their home state is here to stay,” Mr Callaghan said.
The virtual inspection platform noted that Queensland continued to be a favoured destination, particularly by those looking to exit the Sydney and Melbourne markets.
“Queensland, particularly the Gold and Sunshine Coasts, remain a popular choice for interstate migration,” said Mr Callaghan.
Data showed that buyers from the two biggest cities continue to lead the southern exodus, contributing to the one in three interstate buyers inspecting Queensland properties.
Buyers particularly zeroed in on the Gold Coast, which saw the most interstate inspections of any city with an average of 42 per cent from January to June.
At the other end of the spectrum, Sydney bagged an average of 10.28 per cent, indicating that buyers are not looking towards the harbour city for their next buy. Melbourne was also notably not a popular choice among interstate buyers, with a six-month median of 13.6 per cent over the period.
Mr Callaghan predicted that as interest rates continue to rise and buyers continue to be priced out of big capital city markets, there will be a “continuation in the number of people looking to move interstate, particularly to Queensland”.
He noted that vendors in markets that were currently heavily favoured southern buyers have the upper hand regarding negotiations.
“Sellers who tap into the pool of southern buyers will be able to command higher prices, even as the buyer market continues to soften,” Mr Callaghan stated.
Despite these seller-friendly conditions, Mr Callaghan stated that vendors need to be strategic and work with agents that use the best available technology in the market in order to secure the best deal.
“Given we’re seeing interest rates rise and the heat come out of the market, sellers need to work with agents who use innovative technology to tap into interstate buyers,” he said.
He also emphasised that agents needed to take advantage of the sight-unseen market to get optimal results for their clients.
“Agents who are able to leverage the sight unseen market will be able to leverage the influx of Sydney and Melbourne buyers to achieve much higher price points,” Mr Callaghan said.