Leading Australian property developer Crown Group has seen buyers snap up $42 million worth of off-the-plan apartments in February and March as they scrambled for the security of bricks and mortar.
This includes the sale of a penthouse apartment this week for $3.67 million at the new tropical urban retreat Waterfall by Crown Group development in Waterloo.
Recent economic conditions have prompted the lowest interest rates in history and a favourable exchange rate, causing many buyers to jump on a good deal now to lock in a new home or investment property.
Crown Group COO Sales & Marketing Prisca Edwards said the strong sales and the company’s high web visits and digital enquiries showed that buyers were still out there, and they were looking for opportunities for long-term security and growth.
“History tells us that housing generally does relatively well in Australia in times of economic uncertainty, as people seek out bricks and mortar because it’s seen as a safe bet,” she said.
According to an ABC news report, in the last Australian recession, home prices declined only around 4 per cent in 1990. They dropped in only one of the five years following the financial crisis of 2008, by 4.8 per cent in 2009, before rebounding 2.1 and 9.3 per cent in the following two years.
“We expect that with the economic stimulus measures and an expected economic rebound later this year, this principal will again hold true – property prices will climb out of this crisis,” Mrs Edwards said
“There is also an undersupply of new homes looming in certain parts of Sydney right now, and people feel they need to act fast to secure an apartment, because they don’t know when more new homes will come online.
“Crown Group is one of the only developers releasing new apartments in Sydney this year. So, we expect sales to continue as they have so far this year – strong and with steady price growth.”
She said savvy investors always looked long-term and beyond testing conditions, to seek out reputable developers and good investment opportunities that are well located.
“Overseas buyers are taking advantage of the low Australian dollar to make a significant saving,” she said. “This can be up to 14 per cent for those holding or savings in Hong Kong and Singapore, or 40 per cent for those with money in the US, depending on the timing.
“Some see a degree of urgency – they want to secure a property now in case the situation changes with the banks. They want to strike now while the iron is hot.”
Mrs Edwards said Crown Group was rapidly adapting its marketing to adjust to the new Government-imposed restrictions on live auctions, open homes and display suites.
“Now more than ever, this is the time for companies to innovate,” she said. “Our teams are brainstorming daily to maximise our digital marketing tools.
“Our sales team is filming personalised virtual site tours for each display suite, in English, Mandarin, Cantonese and Indonesian. They are also setting up online appointment schedules and tours.
“The marketing team has transferred its spend to online advertising rather than print or out-of-home (billboards, ads on trains or buses) because people are at home, with time on their hands to search online. We are also producing beautiful 360-degree videos of our apartments and penthouses.
“For our hotel division, SKYE Suites, we are using benefit-led marketing to repurpose the product, setting up our three hotels for long and short-term stays. It’s about providing what people need and can benefit from now.”
Crown Group has apartments for sale at five developments across Sydney: Mastery by Crown Group, Eastlakes Live by Crown Group, Infinity by Crown Group, Arc by Crown Group and SKYE by Crown Group in North Sydney.