In a market where tight housing supply is driving record prices across many suburbs but units continue to lag behind, a unique opportunity is emerging for those ready to “right size” from a full size house to an apartment in Cairns
As an agent, I seem to be having a recurring conversation with a certain category of clients.
They would love to sell and realise the gain in value their home has seen in the past 12 months,
but without a clear direction and “next step”, they just aren’t ready to make a move - this has
been a particular concern among those looking to take advantage of record low interest rates to
upgrade.
In a market where tight housing supply is driving record prices across many suburbs but units
continue to lag behind, a unique opportunity is emerging for those ready to “right size” from a full
size house to an apartment in Cairns.
For those looking to downsize, they can be better positioned to make the most of what appears
to be a bit of a two speed market - selling a detached home in the suburbs that is surplus to
their needs (but in hot demand) at a premium, and then buying into an apartment either in the
City or on the northern beaches in a market that has yet to see the same level of heat. Whether
its being able to afford a 3 bedder rather than a 2, something with a better view or just having
funds leftover for an update just the way you want it, being able to speed up that next move is
not something to be taken lightly.
Beyond the immediate benefit to those selling, downsizing also serves to improve the efficiency
of the market as a whole. With critical under-supply in the housing market and a backlog of
construction meaning that new houses conceived today could be up to 12 months (or longer)
from completion, better matching property supply to those that need it can take some of the
pressure off, keeping things on the boil without blowing all the steam at once and leaving behind
burnt fingers. When we consider that the most sought after housing configuration is typically a 4
bedroom, 2 bathroom house, then having more of this kind of stock enter the market is going to
hit right into the thickest part of the demand wedge.
So if the kids have grown up, moved out (or been dragged out) and you’re finding yourself
dusting empty rooms, this might just be an option worth considering.