'Mum and Dad' property investors dipping toes back in (Source)

According to CoreLogic, property investors are coming back into the market, particularly Mum and Dad investors who potentially have bought their first rental. With mortgage rates dropping and term deposit rates also declining those with money in the bank may now look to invest in property. CoreLogic suggest that the pace in which they do so could also increase as interest rates drop further.

In addition to investors, first home buyers can purchase at what is an opportunistic time to get cheaper pricing. Pent up demand from those looking to move from one house to another is also present, meaning the property market has some moving to do with a plethora of buyers who have held back when interest rates were high, to now being more optimistic about purchasing moving forward.

Is housing market rebound waiting to happen? (Source) 

ANZ Bank is reporting the possibility of a stronger-than-expected housing market rebound as interest rates decline. They are suggesting a small drop in pricing this year, stabilising late this year and pricing picking up next year.

With two-year mortgage rates having fallen 1.02% across all banks since the height in November last year, ANZ state there are plenty of buyers out there waiting for the bottom of the market. However, this could change quickly, and some may miss out if they leave it too long – remember that old phrase FOMO…it might be back sooner than we think!

2025, the year house price rises revert to normal, BNZ says (Source) 

Like the ANZ, BNZ is also suggesting house prices won’t skyrocket this year. However, they are reporting a predicted uplift of 7% over 2025.

With the housing demand we are seeing today soaking up properties that are currently on the market, towards the end of 2024 there could be a modest upswing in house prices.

The housing market has been flat for two years, so a 7% lift next year won’t bring prices back to where they were a few years ago. However, it will be a lift, nonetheless and if history repeats, an upward trend in house prices is ahead.

Du Val debt at least $250m, PwC's Fisk says (Source) 

It is estimated based on the group’s accounting records, that Du Val creditors and investors are owed at least $250 million.

Du Val had 64 entities and PwC’s John Fisk estimates there are approximately 120 investors across Du Val’s mortgage, build-to-rent and opportunities funds who would be classed as creditors and would have a claim against the developer.

Du Val was placed under statutory management so one party could take control and to stop multiple parties trying to protect their own interests allowing the focus to be on protecting the interest of creditors.

More information on this case is reported to be available next week.

Eqypt's new capital city to get $1 billion hydrogen-powered skyscraper (Source) 

A $1 billion 50-storey skyscraper is set to be constructed next year in what is a ‘new city’ temporarily called the New Administrative Capital (NAC) located thirty miles east of Cairo. Egypt has a growing population exceeding 105 million and with this tower being the first of its kind to be powered by clean hydrogen it is hoped the tower will attract people to the new city.

Solar panels embedded in the façade are expected to produce 25 per cent of the electricity it consumes, with the rest generated by hydrogen transported to the building in liquid form. The tower will also have ultra-fast VIP elevators, advanced security systems and a helipad.

With this skyscraper expected to be completed by 2030, two sister properties are also a possibility in Dubai and Riyadh.

Having minimal or zero carbon emissions is on every developer’s wish list, with the property aiming to eliminate any reliance on utilities and setting the scene for Egypt to have a green energy hub.

The NAC will span 270 square miles and is expected to house 6.5 million people. The cost to develop the city is said to be up to $60 billion.

Have a great weekend everyone!
From the team at Erskine Owen.