Apr 23, 2018
What’s happening in the property markets around
Australia?
In today’s episode, I’ll speak with four experts to give you an
update on what’s happening state by state.
You'll hear how our property markets peaked in September last
year, and while the boom is over, it seems we’re in for a benign
correction.
Some areas are still growing, while others are slowing
down.
In most capital cities, I believe that we’ll end up with values
higher at the end of the year than they were in the
beginning.
Here’s some of the things we discuss:
Melbourne Property Market with Kate
Forbes:
- The Melbourne
property market is consistently performing well. It may not be
the best capital city performance at the moment, but it has been
one of the best performers on a consistent basis over the last
decade.
- Capital growth will continue in the Melbourne market, but not
to the same levels that it has been.
- Melbourne is experiencing a population boom because of its
economic activity
- Melbourne will continue to see rental hikes over the next
couple of years
- Investors are less able to get into the market in Melbourne due
to new APRA regulations
- Advice for investors looking to get into the Melbourne
market
Sydney Property Market with Ahmed
Imam:
- Why the Sydney market is fragmented
- Dwellings aren’t being built fast enough to keep up with
population growth and migration in Sydney
- How many houses are being built each week in Sydney – eyet
there is still a deficit
- Infrastructure projects than are occurring in Sydney
- How Sydney property ownership will look different going
forward
Brisbane Property Market with Brett
Warren:
- What was holding
Brisbane’s property market back, and why it’s doing better in
2018
- What’s on the horizon for Brisbane’s property market
- Interest in Brisbane from overseas
- Why homebuyers are getting back into the Brisbane market, and
how that affects property values
- Rental prices are continuing to grow in Brisbane
- What type of Brisbane properties are best for investing in
- Property performance on the Sunshine Coast and Gold Coast
Economic Factors Affecting Property Markets with
Ken
Raiss:
- External factors that are affecting Australia’s economy
- How unemployment, wages growth, and infrastructure expenditures
are affecting Australia’s economy
- How the infrastructure boom is going to affect Australia’s
economy in the coming years
- Whether the average Australian household is in good shape to
take on more property debt
- Despite the slow wage growth, there are no major speed bumps
ahead in the Australian economy
Other Capital Cities in Australia:
- Adelaide: Adelaide is very fragmented and has
few growth drivers. Overall, home value growth is low
- Perth: Perth’s market peaked in June 2014 and
hasn’t reached bottom yet, although it’s getting close. It’s too
early for a counter-cycle of investment
- Hobart: Hobart is Australia’s most affordable
capital city and has delivered the highest capital growth over the
last year. However, the market is very small and it has few
long-term growth drivers
- Darwin: Darwin is still suffering from the end
of the mining boom. Housing prices will likely continue to fall
through much of this year.
- Canberra: Canberra has a strong economy and
above-average population growth. However, Canberra has very high
rates of land tax that are probably going to get higher. This
disincentivizes investors.
- Regional Markets: Some regional areas perform
better than some capital cities, but overall the trend is toward
capital cities being a better investment.
Links and Resources:
Michael Yardney
Metropole
Kate
Forbes
Ahmad
Imam
Brett
Warren
Ken
Raiss
Some of our favourite quotes from the show:
“You shouldn’t change your long-term strategy because of
short-term ups and downs in supply and demand or finance.” Michael Yardney
“I see the next major spending spree is really the
infrastructure boom which is going to drive us through the next
decade.” Michael
Yardney
“This year’s hot spot very quickly becomes next year’s
not-spot.” Michael Yardney
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