So what’s ahead for 2014 and the Property Market ? Source: ANZ Bank Our housing markets are in the early stages of a cyclical upturn which likely to continue throughout 2014 and 2015, buoyed by low interest rates (even though there may be an increase in rates late in the year) and increasing consumer confidence as the media keeps reminding us that some properties are increasing in value by $1,000 a week. This will be supported by continued population growth that could see our numbers swell by another 500,000 people in the next 15 months at a time when supply just can’t keep up So how high will prices go? We don’t have a crystal ball. What we do know is that the fundamentals suggest the market has some time to go before it hits its next cyclical peak. However rising unemployment and the inevitable economic slowdown could cause consumer confidence to falter a little next year and slow things down. By the way that’s not a bad thing. If property values keep rising by the equivalent of 20% a year (as has happened in Sydney and Melbourne over the last quarter) then this cycle is likely to be cut short earlier as this level of growth is unsustainable. The property market will be fragmented – regional Australia is likely to under perform the capital cities, not all capital cities will grow at the same rate and within each city some properties will out perform the others. So as always careful property selection will be crucial if you’re planning to invest in property. As for the Gold Coast in Queensland it would have appeared to have bottomed out so a great time to Buy and or Invest. Also a good time to Sell as it is expected that the market will grow slowly in proportion to some major capital cities due to a sluggish economy, high unemployment and with the retail and tourism industry recovering only marginally.
Posted on: Thu, 07 Nov 2013 23:36:10 +0000
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