Recent Interest Rate Rise Adds Complexity To The Property Market Nationwide
The November interest rate rise has continued the trend of recent times, furthering the challenges experienced by both landlords and, subsequently, tenants, as the relationship between the two navigate the complex landscape of the current property market in both Hobart and the nation.
It’s no secret that the cost of living is reaching staggering levels for many Australians as the country battles the rapid rise of inflation, which brings with it interest rate rises to slow the progression. This creates pressure for individuals in all market areas; as landlords’ repayments increase, so must rent costs
The current rate rise marks the 13th time the Reserve Bank of Australia has lifted rates during its current cycle, with the expectation that one or two increases may be on the horizon in order to reduce inflation to the targeted 2-3% window by 2025.
What both landlords and tenants can expect during that time is more of a push/pull relationship, with the two needing to work in cohesion to ensure viability on both sides. The ever-present positivity, particularly in the Hobart region, relates to the strength of the market, as a wide array of businesses and individuals actively pursue property in the area.
Recently, the team at Devine Property have leased a range of commercial property types, from warehouse space, shopfronts, and factories, all lasting a short time on the market before the appropriate suitor was located. This demonstrates the strength of the market in Hobart; however, dialogue between all parties is a must to navigate the current real estate climate.
The latest interest rate rise has undoubtedly added another layer of difficulty to the lives of landlords and tenants across Tasmania and the nation, with increased costs on both ends requiring that each party works together to remain steadfast in the climate. With further rises expected, this conversation will continue as inflation is targeted to return to the desired levels in 2025.