Invest
Property growth hot spots tipped despite downturn
A number of capital city suburbs and regional centres are still picked to achieve growth this year, says one buyer’s agent, despite price drops across markets Australia-wide.
Property growth hot spots tipped despite downturn
A number of capital city suburbs and regional centres are still picked to achieve growth this year, says one buyer’s agent, despite price drops across markets Australia-wide.
According to Propertyology’s head of research, Simon Pressley, varied markets across the country could see price increases this year, dependent on the banks’ appetite for increasing investor lending, following APRA lifting its cap on interest-only loans.
He even suggested that some strong areas, such as Hobart, could return double-digit growth if lending conditions improve.
“Hobart is again a no-brainer as the capital city expected to perform the strongest in 2019,” Mr Pressley said.
“The Tasmanian economy is a remarkable success story that has now spread right across the state.
“Launceston has the potential to be Australia’s property premiers in 2019, while Burnie and Devonport also will perform strongly.”
Mr Pressley also maintains high hopes for our western capital city, stressing that Perth’s once high vacancy rates have significantly fallen, signifying the city could potentially skyrocket to be Australia’s best performing capital city in two- or three-years’ time.
“Don’t be fooled by the 2018 price fall of 2 per cent in Perth because a large proportion of its former oversupply has been absorbed, vacancy rates have reduced from 6.9 per cent to 3.3 per cent over the last two years, and expectations for new job creation is now high,” he said.
Mr Pressley said that should a less conservative credit policy be reinstated, the likes of Brisbane, Adelaide and Canberra could also experience substantial price growth of up to 5 or 6 per cent.
“I couldn’t rule out somewhere close to double-digit annual price growth in Brisbane and Adelaide over the next two to three years and conditions in Canberra still look solid – although steer clear of apartments,” he said.
More broadly, Mr Pressley picked the resource states of Western Australia and Queensland to outperform the markets into the projected future.
He pinpoints particularly the Cairns, the Sunshine Coast, Mackay, Rockhampton, Townsville and Toowoomba as growth regions for Queensland; and Albany, Busselton, Margaret River, Bunbury, Geraldton and the Pilbara for Western Australia.
In NSW, he foresees the regional centres of Wagga Wagga, Armidale, Tamworth, Muswellbrook and Parkes as faring well, while Victoria’s Shepparton, Warrnambool, Ballarat, Bairnsdale and Bendigo are picked to go strong.
“The best opportunities for the foreseeable future are in locations outside of capital cities where housing is more affordable, annual cash flows are stronger, housing supply is tight, and economic conditions are good,” he said.
Mr Pressley said although he is aware that his views deviate from many in the industry, a number of key fundamentals support his forecast, such as job growth, signs of wage increases, tightening housing supply and falling rental vacancy rates.
“On a national level, our economy is looking better than it has for years with unemployment at 5.1 per cent, the federal budget set to be in surplus for the first time in a decade, the economy growing, and our population set to increase by more than 350,000 again year,” he said.
Mr Pressley said the stalemate on interest rate movements along with growing international student rates, tourism and mining sectors creating more jobs will help to promote strong growth.
“There is a long list of big-picture, positive stuff, which collectively paints a very bright future,” he said.
“Believe the doom and gloom reporting if you wish, but I’m telling you that there will be locations that experience a property boom over the next few years.”
For more property hot spot picks for 2019, click here
Property
Is the house price ‘time bomb’ about to erupt?
Australia’s housing system is not working for the economy and an immediate overhaul is needed, a new report has alleged. The report calls into question the government’s current policy, which dicta...Read more
Property
Australia’s house prices rise, again
Australia’s house prices just went up again in a big way. ...Read more
Property
Family Home Guarantee under fire for narrow size and price caps
Questions surrounding the real value of the government’s new Family Home Guarantee scheme have surfaced, with data pointing to several issues with the scheme, including its apparent narrowness in te...Read more
Property
Construction dwindles as HomeBuilder ends
While detached dwelling construction continued to rise in April, the overall number of loans for new homes has fallen, official figures show. ...Read more
Property
When can we expect mortgage tightening?
While interest rates are said to remain low for an extended period of time, changes in the lending landscape are expected shortly, with the RBA itself announcing it is watching investors very closely....Read more
Property
The most affordable city for first home buyers isn’t what you’d expect
While Sydney remains the zenith of the Australian property boom, new research has revealed that it is in fact the most affordable capital city for first home buyers. ...Read more
Property
Australia’s most affordable and liveable suburbs revealed
The most affordable and liveable suburbs across four of Australia’s major cities have been revealed. ...Read more
Property
What the Victorian budget means for property owners
The Victorian government has used today’s budget to announce a raft of changes to the property market, with those at the top being asked to pay a little more. ...Read more
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Are property prices set to crash? Should you jump on board the fintok craze? And how to prepare for this tax time
Listen now
Dissecting the budget and what it means for your equities, property and super
Listen now
Has the property market reached its peak; Biden’s climate summit and our sharemarket, and the upcoming budget
Listen now
Property
Is the house price ‘time bomb’ about to erupt?
Australia’s housing system is not working for the economy and an immediate overhaul is needed, a new report has alleged. The report calls into question the government’s current policy, which dicta...Read more
Property
Australia’s house prices rise, again
Australia’s house prices just went up again in a big way. ...Read more
Property
Family Home Guarantee under fire for narrow size and price caps
Questions surrounding the real value of the government’s new Family Home Guarantee scheme have surfaced, with data pointing to several issues with the scheme, including its apparent narrowness in te...Read more
Property
Construction dwindles as HomeBuilder ends
While detached dwelling construction continued to rise in April, the overall number of loans for new homes has fallen, official figures show. ...Read more
Property
When can we expect mortgage tightening?
While interest rates are said to remain low for an extended period of time, changes in the lending landscape are expected shortly, with the RBA itself announcing it is watching investors very closely....Read more
Property
The most affordable city for first home buyers isn’t what you’d expect
While Sydney remains the zenith of the Australian property boom, new research has revealed that it is in fact the most affordable capital city for first home buyers. ...Read more
Property
Australia’s most affordable and liveable suburbs revealed
The most affordable and liveable suburbs across four of Australia’s major cities have been revealed. ...Read more
Property
What the Victorian budget means for property owners
The Victorian government has used today’s budget to announce a raft of changes to the property market, with those at the top being asked to pay a little more. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
