BUYER CONFIDENCE RETURNS TO AUSTRALIAN RESIDENTIAL MARKET
6 JUNE 2019 Australia is enjoying a return to high consumer confidence after the Reserve Bank cut the official interest rate from 1.5% to a new record low of 1.25%. Economists believe there are one or two more interest rate cuts ahead this year, possibly as early as next month. The last time the rate was changed was August 2016.
The rate cut is welcomed by home buyers and property investors and follows the outcome of the recent Federal election, which saw the Liberal party remain in power for another term, delivering even more certainty in the residential market in Australia.
Crown Group Chairman and Group CEO Iwan Sunito said he had seen a surge in both confidence and buyer activity in the past two weeks, as a result of the election outcome. This had been further compounded by the Australian Prudential Regulation Authority (APRA)’s recent decision to relax lending restrictions for home buyers, and now, the latest rate cut.
Mr Sunito said that Crown Group had enjoyed a buoyant start to the year, with sales increasing exponentially since January by up to 60% each month. “From January, sales had doubled in a month, then tripled from February to March, then rose another 25% to 11 sales in April.
“Our sales team has been dealing with a huge surge in enquiries as a result of the Federal election outcome and the APRA decision in the past two weeks,” he said. “However, this has been the continuation of a trend that started in the new year as investors in Australia and overseas started returning to the market and looking for new opportunities to buy.
“We are expecting to close another $20 million in sales this week and in the second half of the year, we expect to be very buoyant, with sales at Mastery by Crown Group and Eastlakes Live by Crown Group increasing month on month. Property hunters are out there and they are ready to spend money, they are just choosing the right timing – and the timing now is better than ever.”
Mr Sunito said his sales teams were still seeing enormous demand from our buyers for the six developments Crown Group has underway or in its pipeline in Sydney, Melbourne and Brisbane.
“We expect to see a surge in buyers making offers in June, July and August, and a huge turnout at our launch in Brisbane’s West End later this year, now that market confidence has returned,” he said.
“This is because fundamentals in the Australian economy are still sound – economic growth is solid, interest rates and inflation are low, unemployment is still low – and as a result any measures that allow finance to be secured more quickly and easily will instil a broader sense of confidence among buyers.”
The good news has also extended in the leasing side of the company, Crown Property Agency.
Crown Group Director of Property Management Anthony Caudullo said the dedicated and experienced leasing team at Crown Property Agency had been inundated with inquiry from its 20,000-strong renter database since it released the first 100 new apartments at Green Square earlier last month.
“At Infinity by Crown Group we have had 800 inquiries for rentals since we released the first 100 new apartments for lease on 4 May, with 582 people turning up that day to our first open day in Green Square,” Mr Caudullo said. “Forty apartments had been successfully leased out by our CPA team and we expect all 100 apartments to be leased out within weeks – which is very unusual.”
For more information on leasing at Infinity by Crown Group, visit https://www.crowngroup.com.au/crown-property-agency/ or call 1800 940 455.
For more information on Crown Group properties for sale visit www.crowngroup.com.au.
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Natasha Granath, PR & Communications Manager at Crown Group
(02) 8904 7051
Lina Guo, Communications Executive at Crown Group
(02) 9925 0088 or 0429 459 510
About Crown Group
Crown Group Holdings (Crown Group) is a leading Australian property group specialising in property development, property investment and serviced apartments. The company was co-founded by architect Mr. Iwan Sunito and engineer Mr. Paul Sathio with its first project in 1996.
Crown Group has successfully completed major developments in Sydney’s best locations including Bondi, Bondi Junction, Parramatta, Ashfield, Epping, Homebush, Newington, Pennant Hills and Rhodes and most recently the 25-storey Arc by Crown Group in Sydney CBD.
Today, Crown Group boasts a $5bn portfolio of projects under development and in the pipeline and is currently developing four major projects in the Sydney area: Infinity by Crown Group in Green Square; the $500 million five tower precinct Mastery by Crown Group in Waterloo being developed with Mitsubishi Jisho Residence; Waterfall by Crown Group in Waterloo; and Eastlakes Live by Crown Group the most exciting new address in the Eastern Suburbs.
Crown Group launched its first SKYE Suites in Parramatta in August 2017 and SKYE Suites Sydney in October 2018.
Crown Group has been awarded more than 30 high-profile industry awards including the 2018 UDIA NSW Best Mixed-Use Development and 2016 International Property Awards Best Residential High Rise Architecture Australia for V by Crown Group Parramatta; 2017 Property Council of Australia’s Annual Property Congress’ one of the World’s best projects for Infinity by Crown Group; 2017 Master Builders Association (MBA) NSW Excellence in Construction Awards for Skye by Crown Group, 2015 International Property Awards Best Residential Development Australia for Arc by Crown Group, 2015 Master Builders Australia (MBA) NSW Excellence in Construction Awards for Viking by Crown Group Waterloo and 2014 Urban Development Institute of Australia (UDIA) NSW President’s award – considered one of the highest property development accolades in Australia – for the seven-tower, resort-style development Top Ryde City Living.Download the original article