Property prices in the wealthiest postcodes in the nation have made the fastest recovery over the last 12 months. This is due to rising sentiment, lower interest rates, and low supply in the market.

This is interesting to see as these areas over the past 12 months actually fell the furthest. This is because, generally, in that end of the market, the top end is the area that gets affected the most, and then when there is a recovery, that’s when you see the top end start to really drive up because it’s fallen the most.

Now, be warned; agents are telling us that the quality of the supply that’s coming onto the market is actually very low. This is due to a lot of the vendors waiting on the sidelines because the interest rates are so low. I mean, interest rates are the lowest that we’ve had, probably in the history of Australia. And therefore it’s cheap money, it’s easier to manage in terms of repayments, and they’re waiting to see, will this volatility in the market, because we actually don’t understand whether the market is fully recovering or whether it’s just a blip and a bounce that we’re experiencing at the moment. To actually then put their property on the market and then make, obviously, either buy another property or just profit from it and then invest somewhere else.

Together with all this, we’ve got a weak dollar that’s currently happening, we’ve got turmoil that’s happening overseas, in particular in Hong Kong and Singapore, and this is driving a lot of money into Australia, which is also driving money into that prestige market, and therefore, it’s driving the market even further.

But remember this though, we’ve got low interest rates now. Money is cheap, and what’s actually happening right now is people not only focusing on actually buying property, they’re focusing on other investments that they’re looking to invest their money. Therefore, not looking to sell, therefore what’s happening is the actual properties that are on the market right now, because there’s such a low supply, it’s driving the market really high.

And, look, we don’t know where this is going to go. We’re in a spring market at the moment. Generally, spring market is a great time to sell property. And, coming into summer, everyone’s feeling great.

And let’s see where the market is going to go over the next 12 months.