Sep 25, 2017
Boy have things changed in the property markets over the
Growth is stalling, so what's ahead for the year?
Today’s show is going to answer this question plus
It is a special edition of my weekly show and
I'll chat with four experts who share their “on the ground”
knowledge as we do our Spring State by State property market
Today’s discussion includes:
- What’s really going on in Australia’s major
capital city property markets
answer the question: Is the market consolidating before another
rise or have we reached a peak?
show you how property prices don’t always go up.
explain how we are at a time of increased risk and
Ken Raiss, Director of Metropole
Wealth Advisory – The Economic
global economy is improving and the labor market is
wage growth is restraining spending.
is growing at a reasonable pace driven by infrastructure and
has a moratorium on sending money overseas.
US has one of the stronger economies and is slowly raising interest
Australian economy is going through a bit of a rough patch, but
are seeing low wage growth and higher prices particularly in energy
- Business confidence is high, but this has not
translated into hiring new staff or increasing wages.
- Interest rates aren’t expected to rise at least
in the second half of 2018.
- People pulling money out of their savings has
put a damper on things.
Kate Forbes National Director of Property Strategy
- Melbourne has been the best performing property
market over the last 20 years.
- Population growth and job creation have been
strong fundamental drivers.
- Migrants have been coming to Melbourne for all
the permanent jobs creates by the strong economy.
not too late to get into the market, but correct property selection
is critical – it needs to be an investment grade property
location of the property is paramount.
Ahmad Imam Senior Property Strategist –
- Sydney property prices have grown 13% over the
last year, but the markets are fragmented.
- Property price growth has been stronger in the
inner ring suburbs.
- Capital gains in those pockets that had strong
growth are being weighted down by affordability
lower end of the market will benefit from first home buyer
growth has been driven by strong population growth and skilled
- Property is also a popular asset class for baby
boomers leading up to retirement.
not too late to buy, but now more than ever you have to buy an A
- Strongest and most stable growth in existing
and established apartments. Small to medium density boutique style
is also strong growth in townhouses and detached houses at the
Brett Warren Senior Property Strategist –
- Brisbane has grown about 3%. The housing market
has been performing strongly.
- Brisbane lost job growth and the population
population growth and job growth are picking up.
is also infrastructure expansion which is a positive for investors
- Better performing areas have fundamental
drivers of good infrastructure, employment, walkability, and good
careful of buying in the Sunshine and Gold Coasts.
- Investment opportunities in the good pockets
and employment hubs.
The Other Capital Cities
home values have increased about 8%
over the last year.
- Darwin values are down and likely to keep falling a
little. Values are 18.6% lower than its peak. This is a market best
- Property values in
by 13.6% over the last 12 months. The economy is also starting to
pick up. There has been short term growth, but very few long term
- Perth markets are still languishing with significant
over supply. Dwelling values have fallen. I’m not convinced that
this is a good place for counter cyclical investing.
markets are very fragmented.
Property values have increased, but there are very few long term
growth drivers. There are better places to invest.
Links and resources:
“I’m an investor not a
speculator.” Michael Yardney
“The vast majority of our
economy growth is in the capital cities and that’s where 80% of our
population live.” Michael Yardney
“I would avoid investing in
areas that aren’t capital cities as the gap between our large
centers of economic growth and our regional markets is going to
keep widening .” Michael Yardney
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