Port Douglas properties are hammering it

The post Covid property market has emerged like a phoenix from the ashes flying skyward as demand outstrips the supply and property prices soar.

In 2020 migration to Queensland was 90% greater than the decade average and this trend continues to rise through 2021. As people realise that they can work from home and as remote workers return home, lockdowns in a tropical paradise are so much more manageable than city apartments.

Research by Corelogic suggests that 25,000 people have moved to Queensland during the past financial year.

Port Douglas with its resident population of 4,000 is bursting at the seams. With a severe lack of rental accommodation and a high demand for holiday accommodation this has put much pressure on the existing stock of properties for sale.

With interest rates being at an all time low investing in bricks and mortar are seen as giving better returns than any savings account.

As in the economic adage of ‘demand and supply’, the lack of supply is pushing up demand and that’s pushing up prices.

Many properties are now being sold before they are even advertised and the ones on the market are putting up their prices to adjust to this demand.

When a market becomes highly volatile it is difficult to appraise based on previous market figures. It becomes more a case of ‘a property is worth what someone is willing to pay for it”. Multi bid situations are becoming more prevalent and behind each offer is a waiting list of eager purchasers willing to pick up any pieces if the contract falls over. 

Vendors are increasingly asking now for cash offers only and no conditions.

This is leading to a situation where auctioning properties can be the answer and the perfect fit for today’s market forces.

"In a changing market selling a property by auction can be the most advantageous method of sale as it creates competition, urgency and transparency around the true market value of the property." Clare Ferguson - Domain

Judging by the 2021 figures for auction clearance Australia wide clearance rates are high and this is a good way that everyone can get a ‘piece of the action’.

This gives a level playing field to all prospective buyers and vendors can be assured that with the greater demand the best price will be achieved with the present market forces.