Real estate rebound? Green shoots in Albany property market

Jessica CuthbertAlbany Advertiser
Albany Real Estate.
Camera IconAlbany Real Estate. Credit: Laurie Benson Albany Advertiser

A local real estate director says the property market in Albany is showing signs of a rebound.

Professionals director Greg Pearson said while the market was still tough, green shoots were starting to appear.

“We are certainly starting to see more buyer inquiry but we aren’t seeing that flow through to sales just yet,” he said.

“Rental properties have also dropped, but it doesn’t mean the price has been impacted as of yet.”

He said the local market had come to the end of what he termed “boom phase” and the “downturn phase”.

During the boom phase, real estate prices increased very quickly.

While homebuyers supported the market, it was investors who created the property booms.

Mr Pearson said the last boom phase ended about 2008.

The downturn phase was characterised by an oversupply of properties which led to increased vacancy rates and decreased rental values.

Next came the “stabilisation phase” when rising demand, falling interest rates and rising rents set the scene for the next “upturn phase”.

During the upturn, vacancy rates slowly fall, rents rise and property values start to trend upwards.

So where does Albany sit on that spectrum?

Mr Pearson said that since the Federal election, the city had seen an increase in buyer activity and online enquiries.

He said there had also been some changes in the rental market.

“Since experiencing a seriously high number of available rentals properties being advertised in Albany during late March this year, we have seen this number drop,” he said.

In March, 129 rentals were advertised publicly throughout the the city, compared with just 78 last week.

There were 155 advertised at this time last year.

“Again we have not seen upward pressure on rental values yet,” he said.

“However, if the decline in available rental stock continues this may bring about upward pressure.”

Get the latest news from in your inbox.

Sign up for our emails