Feb 5, 2018
2018 is going to be a very
different year in property, so today we are going to discuss what
is happening in each state around Australia and what you can expect
to happen in our property markets.
2017 started with a bang and
ended in a whimper.
In the middle, foreign
investment slowed down, we embraced stamp duty, and hiked land
taxes. Other disincentives were given to foreign investors and APRA
slowed down lending.
Over the last property values
rose 5.5 percent across all the combined capital cities.
As always, the property markets
were fragmented. Only Melbourne and Hobart record value growth over
10%. Perth and Darwin’s property values decreased.
Once a year I conduct a series
of seminars around Australia, and I will be joined by Dr. Andrew
Wilson, Ken Raiss, and local property experts. If you would like to
attend for free use the Promotion Code
Podcast at https://propertymarketupdate.com.au/
Today’s discussion includes:
An update on the
Sydney Property Market with Ahmad
is still good upside for investment grade properties
market sentiment is subdued and investors are holding
- Invest for long term capital growth and
consider borderless investing
- Prices in Sydney should rise this year, but not
as much as the previous 12 months
can’t expect the same level of growth that we had over the last 4
or 5 years
will not be growth in secondary locations. This is a time to focus
proven stable locations.
- People are looking at better class assets – a
flight o quality.
is much less competition for the A grade assets because people are
- Select the right location in the middle rings
of Sydney and then find the right property there.
Melbourne Property Market with Kate
fundamentals haven't changed – we’ll have another good year in
year we had 144,400 new residents.
are not a lot of vacancies – vacancy rates are around
Melbourne property market grew by 10.1% last year
- Finance availability is cramping the number of
people that can get into the market.
- Foreign investors have slowed because of
finance challenges and new taxes.
introduction of a “Window Tax” for properties that have been vacant
for six months.
this lead to owners putting them on the market.
- Invest for the long term especially in the
inner to middle ring affluent suburbs that are built out and have a
reasonable supply cap.
- Growth corridors did well last year. As the
markets are slowing these buyers will have more
things slow down there is a flight to quality.
Brisbane Property Market with Brett
- Brisbane property had an overall growth of
2.45% last year, pulled down a bit by the apartment
there was solid growth of some housed - even 10 and 15%
growth in superior locations
need to buy the right property in the right location to outperform
and employment bring certainty and higher demand for
Gold Coast may be a good market in the short term, but it is
volatile and influenced by tourism.
is not enough job opportunity for long term growth on the Gold
Coast. 60% of jobs in Queensland are around Brisbane.
demand for property will be where the jobs will be.
- Brisbane doesn’t have urban sprawl and job
opportunities in the outer suburbs.
in superior locations where all the boxes are ticked and demand is
Other Major Capital Cities of Australia
is still speculative. There weren’t
a lot of growth drivers like jobs.
- Perth hasn’t bottomed yet. Sales volumes are down,
but people are still waiting to see if it hits rock bottom.
Significant oversupply of apartments in Perth.
- Hobart is still Australia’s most affordable capital
city. The market is very small. This years hot spot can be next
year’s not spot.
- Darwin is still suffering from the effects of the end
of the mining boom.
- Cenberra is a two tiered market. Detached homes
rose, but apartments are holding back. The population should grow
6% by 2020. It may not be a good place to invest because of the
large land tax.
are some regional markets which are also growing well.
The Property Markets of 2018
market needed to calm down. The growth wasn’t
won’t be a bubble or crash in 2018.
should be more of a soft landing.
- Hobart should be the hottest market encouraged by
speculators – so it’s one to avoid.
should be the second best
- Canberra will also be a steady performer. Avoid
the apartment market.
located homes in Brisbane should do well.
- Adelaide should underperform the other
is near its bottom.
- Darwin property values will continue to
Links and resources:
“2017 was also the year when
first time home buyers came back. There were more than 94,000 first
time homes bought across Australia.” Michael Yardney
“There was also a significant
oversupply of apartments in the capital cities in 2017.” Michael
“2017 was also the year that
headlines in Sydney changed from boom to flat lining and doom and
gloom.” Michael Yardney
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