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Amid ongoing interest rate hikes and consumer uncertainty, a new report found buyers and renters are refraining from exploring their options interstate instead of sticking to their own backyards.
Virtual tours platform Little Hinges analysed over 300,000 virtual inspections conducted in March and found that the percentage of interstate buyer and rental inspections has decreased in nearly all major cities across the country for the first time in 12 months.
On average, the major regions across Australia saw an average of 22.6 per cent of properties inspected from interstate, down from 24.6 per cent in February.
Sydney and the Gold Coast were the only areas to buck the trend, recording a 0.4 per cent increase in interstate buyer inspections and a 0.3 per cent increase in interstate rental inspections on a monthly basis, respectively.
Chief marketing officer Mike York noted that while the firm is still observing one in four inspections coming from outside the state or territory the property is located in, it was “clear that the uncertainty in the market is affecting both renters and buyers.
“This uncertainty has resulted in a ‘wait-and-see’ approach, with more people wanting to stay close to home or holding off on their decision to make big interstate moves,” he stated.
With April marking the first time the Reserve Bank of Australia hit the pause button on rate hikes by leaving the official cash rate unchanged at 3.60 per cent following 10 consecutive hikes, Mr York predicts the central bank’s move could be an inflection point in inspection trends.
“[We] may see inspection trends bounce back in April, or this may be the new normal for the foreseeable future,” he stated.
Despite the declines, the Gold Coast and Sunshine Coast continue to enjoy strong interest from interstate buyers, as data showed 37 per cent and 30 per cent of inspections in the popular lifestyle areas still came from outside Queensland, respectively.
While the portion of international inspections conducted also fell from 6.8 per cent to 6.3 per cent during the period, the report noted international buyers interest in Australian properties remains, particularly with recently announced changes to international migration programs.
The percentage of international buyers looking to purchase in Brisbane, Gold Coast, and Sunshine Coast increased by 1.6 per cent, representing thousands of additional prospective buyers in Queensland alone.
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