Investors with the capacity to purchase property in the current market are set to be the biggest beneficiaries of a forecasted rental crunch in the next 18-24 months.
A report from JLL indicated that an expected dip in apartments being settled in 2020 would cause national rental demand to exceed supply, boosting yields and decreasing vacancy rates.
Pace Development Group’s pipeline of developments is in contrast to the report, with the business set to increase its deliveries.
The mould breaking move is a result of forecasting which predicted the likely short supply.
With two projects already launched this year in Pace of Ascot Vale and Pace of Blackburn, and at least a further two launches for the 2019 calendar year to come.
While Pace are set to benefit from this, the biggest beneficiaries will be purchasers, who have the opportunity to buy from a developer that designs their buildings for the owner occupier market.
While this may seem contradictory, these are the properties expected to be in the highest demand come the rental crunch and availability for apartments with generous living spaces and family friendly features become harder to come by.
Planning and Design Manager for Pace, Michael Holah, is exceptionally proud of the product the business has been putting to market over the last few years, and expects it to put buyers in good stead in the future.
“All our developments have similar characteristics that mean they will always be in demand. They have great access to the CBD, the floorplans are generous and the spec is at a level higher than our competitors.” Holah said.
“When the expected rental squeeze comes, properties that are designed with comfortable living in mind will see yields increase significantly more than those that are of a traditional ‘investor’ type stock.”
Purchasers with the ability to buy in the currently uncertain market can expect to reap the rewards going forward, while they also have the pick of floorplans on recently launched projects.
Pace have developments for sale in Ascot Vale, Blackburn, Abbotsford and Sunshine North, all of which can be viewed here or by visiting pacedg.com.au