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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