Is The Property Market Moving In Investors’ Favour?

Anyone who is in the market to invest in real estate could find their options have improved, as the latest predictions suggest a slowdown in conditions is taking hold.

The Core Logic-Moody’s Analytics Australian Forecast Home Value Index indicates that two years of price growth is now starting to come to an end.

What’s in store for 2016?

Over the course of 2016, the experts predict that house price appreciation is slowing.

This is a result of various factors, ranging from worsening conditions in the national economy and a move away from mining construction-related investment.

In the medium term at least, the labour market is expected to gather pace and rental growth looks set to gain some momentum.

Buyers will need to keep an eye on the latest figures to see whether there are any opportunities to move out of rental properties and into more permanent accommodation.

Melbourne starts to outperform Sydney

There’s also potential for real estate in Melbourne to start outperforming Sydney.

The index shows that values are likely to rise 7.2 per cent in the Victorian capital throughout 2016, although in 2017 this could slip back to 1.3 per cent.

In the three months to September, the Australian Bureau of Statistics (ABS) showed exponential growth across the Sydney market.

The Residential Property Price Index showed a price increase of 19.9 per cent, whereas the rise in Melbourne registered at just 9.9 per cent.

Opportunities in other areas

There are also some other parts of the country that are currently performing well.

Real estate in Hobart is in demand, but the CoreLogic-Moody’s data suggests prices might soon start to rise.

First National Real Estate agents in Tasmania report significant levels of interest from mainland investors. As this demand zeros in on affordable Tasmanian opportunities, prices growth in key areas could well accelerate.

For an insight into the Australian property market and help identifying where to buy your next home, get in touch with the team at First National Real Estate today.

Residential vacancies
Feb 2015 vs. Feb 2016

City 2015 2016
Adelaide 1.5% 1.9%
Perth 2.6% 3.9%
Melbourne 2.3% 2.0%
Brisbane 2.2% 2.5%
Canberra 1.5% 1.3%
Sydney 1.7% 1.5%
Darwin 3.2% 3.5%
Hobart 1.3% 0.9%
National 2.2% 2.3%

Weekly rents rise

New figures from SQM Research have highlighted increasing weekly rents across most capital cities, with only Hobart, Darwin and Perth recording losses.

Canberra saw the greatest average increase across houses and units (6%), Sydney (4.5%), Brisbane (.85%) and Adelaide (2.1%). Melbourne houses were unchanged but unit rents rose 4.1%. Hobart was up 2.4%, Darwin and Perth fell 9.5%.