New research has found that using your smartphone to buy property online can result in a significant increase in price, with the potential to dramatically increase the value of the property.
According to research conducted by the Property Institute of Australia (PIA), the average price of a home on the market online rose by an average of 28 per cent in the three months to November 2017.
This increased price can be partly explained by the increased demand for new homes in Australia, with more than 1.4 million properties on the national market.PIA data shows that the average Sydney house price rose by $1.17 million, or 9.6 per cent, in the same period.
However, this price increase is less than half the rate of inflation, with Sydney’s average price rising by 5.3 per cent.
This was largely driven by increased demand in the Sydney CBD, with prices rising by 7.2 per cent and Brisbane by 5 per cent during the same time period.PAA chief executive officer Ben Smith said while the number of properties on sale had increased, the impact of the rise in the price of properties was not as significant as it might be in some cities.
“When we first started looking at the research, we thought we were going to see prices go up for all properties, but the reality is that it was really just a little bit of an anomaly for Sydney and Brisbane,” Mr Smith said.
“We actually have a pretty high property turnover in our local area, so when you have that sort of change you’re seeing a bit of a slowdown.”
Mr Smith said it was important to note that the research only looked at homes sold online, not properties that had been sold by a real estate agent.
“For a lot of our customers, that means they’re buying a home through a real-estate agent, they’re getting the best value for money out of that sale, they don’t have to go through the process of a sale, it’s all done by us,” he said.
The PIA has set up a website to track the price rise of homes sold through the Real Estate Council of Australia, as well as property listings.
Mr Smith also said the cost of living was not a factor in the rise of the price in the past three months.
“The trend over the last three months has been down a little, but overall we’re seeing prices continue to increase,” he stated.
“As prices go higher, you also have the cost-of-living going down, and that’s also a good thing.”
People are also finding the cheapest property, and I think it’s a trend we’re going to continue to see.
“For more information about the Property and Building Society’s Real Estate Survey, visit www.realestate.org.au.
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