South Gippsland region holding up

PROPERTY prices in South Gippsland have held up resiliently despite the well-publicised interest rate increases according to Andrew Newton, branch manager with Alex Scott and Staff Leongatha.

“The uptick in prices in what many call the “COVID years” saw a phenomenal increase in prices across all regions in the vicinity of 35 – 45 per cent and often more with some areas of the market adjusting accordingly in their asking prices,” Mr Newton said.

“What we are seeing right now is a more measured response from both buyers and sellers. Some are just waiting to see what happens to interest rates in the short term.”

“We’re very much business as usual however, and still fielding plenty of enquiries for houses in Leongatha to buy, and we’re preparing others for sale at a steady rate.” 

At its most recent interest rate meeting the Reserve Bank has kept its rates “on hold”, the second month in a row it has done this.

Sales agent at Alex Scott Leongatha Tony Giles said this is a positive sign for the industry in the near future. 

“This signals to me that the increases are coming to the end of the current cycle. While the Reserve Bank is still not discounting further increases in the short term some of the major banks are saying that some easing may occur in 2024.”

Creating more certainly in the marketplace is good all ‘round for both buyers and sellers. Buyers can have more certainty around what they can borrow and more stability in what their repayments are going to be.

For sellers, stable interest rates produce more buyers on the lookout for properties. 

This in turn leads to properties turning over quicker. 

More buyers generally means more competition and a likelihood the seller will get at or near the asking price.

“At the moment we are seeing some adjustment in the market where sellers who expected to sell at a COVID premium are now being a little more realistic with the price, which is still along way up from pre-COVID prices,” Mr Giles said.

“It’s more the properties that have been on the market for extended lengths of time where we’re seeing that adjustment in expectations.”

Alex Scott also has interest in its grazing and lifestyle property offering; having just listed a beautiful lifestyle property in Woreen, a 207 acre grazing parcel near Foster, and is marketing to sell a property near Yinnar, to name a few.