When it comes to real estate, off-market transactions often remain shrouded in mystery. The term “off-market” refers to properties that are bought and sold without being publicly advertised. But just how prevalent are these hidden transactions in Australia’s property market?
Understanding the Off-Market Landscape
The challenge with off-market property transactions is that they aren’t publicly recorded or advertised. This makes it difficult to pin down precise data. Unlike properties listed on popular websites or showcased through flashy advertisements, off-market properties operate under the radar. Even industry leaders like CoreLogic struggle to provide specific figures on these transactions.
Despite the lack of concrete data, research conducted by Listing Loop sheds some light on the situation. Their findings indicate that off-market transactions account for approximately 20% of Australia’s total property market.
To put this into perspective, let’s consider the numbers from recent years:
- In the year ending August 2021, CoreLogic reported nearly 598,000 house and unit sales across Australia. This surge, driven largely by the impacts of COVID-19, was the highest annual total since 2004.
- Pre-COVID, Australia saw about 435,000 property transactions annually. Even with this lower figure, off-market sales accounted for roughly 87,000 transactions. Post-COVID, this number jumped to around 200,000.
The Allure of Off-Market Properties
In the current market, where it’s more of a buyer’s market than a seller’s, off-market properties can be particularly attractive. For buyers, off-market transactions offer several advantages:
- Less Competition: With fewer buyers aware of these properties, you may face less competition.
- Privacy: For those looking for discretion, off-market deals ensure your search remains under wraps.
- Potential Savings: Buyers may find better deals compared to the high stakes of auctions or private treaty sales.
For sellers, off-market transactions provide their own set of benefits:
- Privacy: Ideal for those who prefer not to publicly list their property, perhaps due to personal reasons like divorce or a family loss.
- Quicker Sales: Often, off-market sales can proceed faster as they bypass the lengthy public listing process.
- No Advertising Costs: You avoid the upfront costs associated with advertising your property.
Navigating the Off-Market World
While off-market properties offer several perks, they also come with some caveats. Some industry experts argue that the lack of competition and transparency might lead to lower sale prices. However, the choice between on-market and off-market should align with your personal circumstances and preferences.
For sellers, the privacy and reduced stress might outweigh concerns about a potentially lower sale price. Buyers, on the other hand, might appreciate the chance to avoid bidding wars and inflated prices.
About Me
Originally from overseas, I embarked on my real estate journey in Australia in 2017, and I’ve been dedicated to delivering outstanding service ever since. My international background has provided me with a unique perspective on the Melbourne real estate market, enriching my approach and understanding.
I’m passionate about guiding clients through their real estate ventures, whether they’re first-time homebuyers, seasoned investors, or seeking luxury properties. My role as both a buyer’s agent and real estate agent enables me to customize my services to fit your individual needs.
If you need expert advice on buying, selling, or navigating the real estate landscape, don’t hesitate to get in touch. I’m here to offer the support and expertise you need for a successful and rewarding real estate experience.
I’m Here to Help
Whether you’re exploring off-market opportunities or sticking to traditional listings, I am here to guide you through the process. If house-hunting feels overwhelming, I can assist with property searches, negotiations, and more.
For exclusive access to off-market and pre-market properties, sign up with Sunny Tamber and stay ahead in the real estate game.
Feel free to contact me with any questions or concerns. I’m always ready to support you through the complexities of buying and selling property.