After a long hot summer, and as we all return to work and the year kicks into gear, it is encouraging to see a renewed sense of optimism. Through the second half of last year, where people previously were either not looking at all or procrastinating, there is more of a sense of urgency in the market now.
As a result, the year has started well with renewed energy in both leasing and sales. This is resulting in successfully concluded transactions in both areas (refer to recent transactions below). Encouragingly, leasing has seen a mix of office and industrial both small and large being transacted.
As we identified in the previous quarter, cashed up investors have been considerably more noticeable and this week’s OCR drop, cutting the cash rates by 50 basis points to 3.75%, will add fuel to the fire. It will also greatly assist both leveraged investors and owner-occupiers, generally having to borrow money, who have been largely absent from the market.
While the economic indicators are still soft, they are of course backward-looking. The discussion with clients and customers alike highlights a renewed optimism that better times are not too far away. We believe now is the time for the more decisive buyer to act as more stock comes to market and before most purchasers have re-entered the market. To that end we have some great properties available For Sale now.
It appears Hamilton continues to buck the national trend with on-going benefit from national and international migration. Our residential rental team, having recently reached the milestone of 4000 properties under management, have only around 1% vacant. Further testament that Hamilton remains a great place to live, work and invest.
In the wider economy the dairy sector is leading the way. A forecast record milk payout will flow back through our region, which does have a close connection with the rural sector.
The residential sector has also seen a notable lift in activity which will ultimately result in higher sales volume and pricing. Auction listings are up markedly, and clearance rates have started to follow suit.
As always, if we can help with your Commercial Real Estate or Body Corporate needs then please contact your preferred staff member. We wish you all the best for 2025, a year of opportunity.