Market Forecasts - Nieuvision

Perth Property Forecast 2020: Top Suburbs and Market Outlook

Rick Nieuwenhoven — Tue, 19 Nov 2019 04:14:18 +0000

Perth Property Market Update

Perth is a picturesque city overlooking the Indian Ocean; it makes a beautiful place to live for young families, retirees and young professionals alike.

With the property market experiencing a downturn in Sydney, Melbourne, and other major cities, Perth has also undergone a slight decline; however, property pundits believe that the market will experience a steady upturn in 2019 and beyond.

Perth Property Forecast 2019

With reference to the QBE Australian Housing Outlook for 2019-2021, the overall prediction is that Perth’s property market should experience some notable growth halfway through 2019 and through to 2021.

There are some crucial things to consider here such as:

APRA credit restrictions
Reserve Bank could decide to raise interest rates if the markets are stable in 2020
Trade conflict between the USA and China over Iron ore could directly affect Perth’s housing market because Perth’s iron ore industry has recently seen an improvement.
If the Labour government passes a Negative Gearing Repeal, this might have an impact on rent prices.

Regardless of the issues mentioned, property experts predict that Perth’s property market will experience a positive upturn in the next two to three years.

Perth’s Property Prices in 2019

QBE’s predicts that Perth’s housing prices will drop -1.7% halfway through 2019, increasing +1.9% at the start of 2020, and 4.8% in 2021. The median house price in Perth will level out at $550,000.

These figures indicate a 5% growth between 2019 and 2021. With the mining industry growing at a steady rate, more and more investors could be setting their sites on Perth in the next two years.

With a decline in the property markets in Sydney and Melbourne, property experts predict that the Perth property market could be one of the fastest growing markets in 2019 and 2020.

Unit Oversupply

When the mining industry saw an upturn in previous years, there was a significant demand for unit style housing. However, when the industry experienced a sharp decline, the need for units drastically declined.

As a result, there has been a sharp unit price slump, with prices falling -5.4% in the past year. Prices are set to increase by approximately 2% by 2020.

The last year has seen a 1.0% population growth rate increase; also with an imminent mining industry revival, the oversupply problem could well be a thing of the past.

Best Suburbs To Invest in Perth 2019

House prices are relatively low in Perth at present; however, with forecast growth over the next two years, Perth could be a viable place to invest in property over the next two to three years.

Which suburbs should property investors be setting their sights on?

Stirling and East Fremantle

Stirling and East Fremantle experienced 1.9% growth whereas inner-city Perth experienced a -0.9 % decline. Outer Perth suburbs dropped -2.6%. Properties can be purchased for under $450,000.

Other suburbs to watch:

-Cottesloe

-City Beach

-Kardinya

-Coolbellup

-Bedford

-Kelmscott

-Harrisdale

With the impending mining industry upturn and steady population growth in Perth, it could experience some notable increase in the next two years.

Property investors should keep an eye on the factors mentioned in this article that could have a direct impact on the property market such as interest rates, the trade conflict between the USA and China and possible policy changes.

That being said, Perth is looking like a viable place for property investors to set their sites on.

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Melbourne Property Forecast 2020: Top Suburbs and Market Outlook

Rick Nieuwenhoven — Tue, 19 Nov 2019 04:14:08 +0000

Melbourne Property Market Forecast

The Melbourne property market experienced the most significant quarterly decline in ten years. By the end of 2018, the Melbourne real estate market dropped by -4.7%.

The NAB residential property index highlights that property investors are losing interest in the city and as a result of this and the decline in Sydney’s housing market, Australian house prices have dropped by -2.7% in the last year.

Considering the overall state of the property market in 2018, how will 2019 fare? What is the overall market outlook for Melbourne in 2019?

What Happened in 2018?

After five years of steady growth, Melbourne’s property market experienced a sharp decline. Here are some of the possible reasons why the figures dropped:

Credit restrictions particularly for property investor loans
Reduced foreign investment
More properties, fewer buyers
Clearance rate reduction
Oversupply of apartment units

Despite the overall decline in the Melbourne housing market in 2018, some outer suburbs held their prices (+6.2%) In comparison, Melbourne’s inner and middle ring suburbs experienced some price reductions with middle ring suburbs declining -5.7% and inner suburbs -24%.

Melbourne Housing Market Forecast 2020

Property experts predict that by June 2019, the median house price in Melbourne will drop to $820,000, approximately 8.4% less than the recorded median for December 2017. Units are also set to experience a decline, with a predicted 3% drop expected.

By June 2021 the median unit price is forecast to be at $545,000, which works out 2% less than the recorded median in June 2018.

SQM Research suggests that one of the factors affecting the property market is the reduction in interstate migration in the past two years.

Migration to Victoria has reduced by 4,000 since 2017. Other factors include bank finance restrictions and weakening foreign investment.

Expected Price Changes in 2019

Some property experts have predicted price drops of -9% to -6% in 2019. Here are some of the factors that might affect property prices in 2019.

-9% decline to -6% decline if the cash rate stays the same, slow economy and Labor government elected.

-11% decline to -6% decline if interest rates rise by 0.20 % and Labor government

-3% decline to 0% decline if 0.50% interest rate reduction and Labor government.

If a Labour government is elected, their planned negative gearing repeal policy could have a significant impact on the property market.

BIS Oxford Economics predicts median unit prices to drop -3.6% by 2020.

Top Melbourne Suburbs to Invest in 2019

It is certainly not all doom and gloom for the property market in Melbourne. These are just some of the top suburbs to carefully consider investing in 2019.

North Melbourne
Collingwood
Ringwood
Croydon

Growth is more likely on the outskirts of the city, for example, Werribee is up 17.86%, and Officer was up 30.55% in the past year.

Infrastructure development and expensive housing in the city center is luring first time buyers to Melbourne’s outer belts.

Lending restrictions, reduced population growth and weakening foreign investment are all factors affecting the Melbourne property market currently.

However, although further decline is expected in 2019, there is still hope for first time buyers and potential investors in the outer Melbourne suburbs.

Property analysts and major banks have recently modified their predictions for market growth in Melbourne, advising property buyers to tread with caution in 2019.

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Sydney Property Forecast 2020: Top Suburbs and Market Outlook

Rick Nieuwenhoven — Tue, 19 Nov 2019 04:14:14 +0000

Sydney Property Market Forecast

The Sydney property market enjoyed ten years of steady and unobstructed growth; however, 2018 saw a slight softening of the market. The overall consensus is that 2019 will see much of the same. What is the general forecast for the 2019 Sydney property market?

The period of steady decline in the Sydney property market saw:

Credit restrictions
Less foreign investment
Increasing bank funding costs
Expensive housing
Oversupply of apartment units in some places

2020 Sydney Property Market Forecast

The median house price in June 2018 was $1,103,50, a 7.6% decline since June 2017.

Outer and Western suburbs experienced a 2.8% drop, in addition to this, vacancy rates increased from 1.8% to 2.5% in June 2018. There was a 7.4% decline for Sydney dwellings by October 2018.

2019 Predictions

Property experts SQM Research have predicted an underwhelming softening of the Sydney property market in 2019 and beyond.

An overall property pricing crash is not expected. They highlight a steady national economy, stable population growth and low unemployment to indicate that a significant property pricing crash is not on the cards for Sydney.

QBE’S Australian Housing Outlook has predicted a fall in prices between 2019 and 2020. Their predictions indicate that 2019 should see an 11 percent decline in prices with the median prices dropping -5.4% between 2019 and 2020.

CoreLogic highlights various factors that could affect overall property prices in Sydney in 2019:

-9% decline if there is no cash rate change, Labor government May 2019 and a slow economy

-11% to -6% drop if 0.20% interest increase and Labor government

-6 % to -3 % drop if cash rate stays the same, slow economy and Liberals stay in power in the upcoming election

Property analysts have predicted that Labor’s planned repeal of negative gearing policy could harm property prices.

Best Sydney Suburbs To Invest in 2019

Eveleigh

Dubbed the next Silicon Valley, Eveleigh is a trendy inner-city suburb with lots of investment potential. Up and coming tech innovation projects will lead to new job creation and startups setting up shop in the area. With brand new apartment projects, art center and hip cafes, Eveleigh is the perfect suburb for young families, professionals, and creative communities alike.

Waterloo

Waterloo is set to become a hot zone for property investors, with brand new apartment developments, local parks, art galleries, trendy shops, cafes and restaurants, a possible Metro line could be in the pipeline. Waterloo is certainly looking like one of the suburbs to watch in 2019.

Brookvale

Brookvale offers relatively affordable housing, close to beaches. There are plans to transform Brookvale into a bustling place to be, with new bars, cafes and new residential developments on the cards. The transport system is efficient, and things are looking up for the Brookvale area.

Baulkham Hills

Baulkham Hills is a family-focused suburb with lots of investor potential. 20% of the suburb is rented, which is excellent news for potential property investors. The brand new Sydney Metro Northwest rail line which is due to open in 2020 will add value to the up and coming suburb, making it one to watch in 2019 and beyond.

The general consensus for the 2019 Sydney property market is that property buyers will most likely have more buying power with softening of the market set to continue, there is no indication that there will be a total property price crash in Sydney.

There is still lots of investment potential in the suburbs with continued infrastructure development, 2019 is set to experience a steady price decline overall, so it is still a case of buyer beware.

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SE QLD- Australia’s New Investment Hotspot

Rick Nieuwenhoven — Mon, 25 Mar 2019 22:37:01 +0000

The Australian housing market and reports of declining property prices has created an air of uncertainty for potential and established property investors. However, there are still opportunities for in growth in Australian housing investment. The key to successful property investing in Australia is to find the most viable locations.

According to property investors and media coverage, Sydney and Melbourne have suffered the most in the property market downturn. However, smart investors are looking elsewhere, and South East Queensland is looking like an attractive option.

South East Queensland Property Outlook 2019

SEQ property prices are steadily improving, and it looks like growth is on its way. SEQ has never experienced massive growth like southern states. However, experts believe that SEQ could be an excellent place to consider when searching for properties to purchase.

According to CoreLogic’s Hedonic Home Value Index, Brisbane performed well compared to other capitals in Australia. The latter part of 2018 showed some obvious growth in the property market throughout Inner city Brisbane, in 2019 the predicted growth for inner city Brisbane is 4%.

Affordability is a definite pull for potential property investors and young families moving to Queensland and investors looking to invest in property in the Queensland market.

Queensland is a good place for potential investors to start. Residential vacancies are currently low and look set to stay that way for the foreseeable future. According to SQM Research rates declined from 3.4% in August 2017 to 2.8% in August 2018.

Population Growth

Queensland’s predicted upturn is directly related to affordability, rapid migration, ongoing population growth, and infrastructure development.

State Government predictions indicate that Queensland’s population is set to rise rapidly to 6.7 million by 2036. A direct reaction to population growth will be widespread infrastructure development, meaning new roads, hospitals, schools, and recreational activities for a growing population of young families and professionals. To meet the demand, at least 30,000 new properties need to be built each year for the next 25 years.

The potential for growth lies in the fact that there is a shortage of housing in crucial areas. Therefore, as the population grows, more housing will be needed to meet the demand.

Suburbs like Ipswich and Logan will need to increase property development to meet the needs of the growing population. For example, population growth is set to increase by 144% by 2036. Logan’s population is set to grow by 46% by 2036.

The Queensland Infrastructure Boom

Queensland will experience a massive boost in infrastructure spending over the next few years, with a predicted spend of $25 billion.

According to the Queensland State Infrastructure Plan March 2016, these are the main infrastructure plans to be completed by 2021:

$10.94 million transport plans with a $2 billion Brisbane Airport upgrade and multi billion Cross River Rail Initiative
$743 million arts recreation facilities
$2 billion Brisbane Live Entertainment facility
$2.03 billion in energy development
$5.37 billion for health and medical facilities
$504 million for education and training
$267 million for water projects

Significant infrastructure development is a vital sign that there are property investment opportunities in a particular area. This is not a surefire reason; however to invest in that area but in the case of South East Queensland, there are lots of reasons why investing in property is a good idea.

As stated earlier, extensive research is necessary when purchasing a property.

Analyse property cycles, and create a comprehensive risk management strategy before committing to anything.

There is definitely huge potential in Queensland for new and established property investors. However, it is necessary to conduct extensive research before committing to purchase a property.

Property investment requires comprehensive risk management strategies and in-depth research into the location, costs, interest rates, population growth, local business, and overall viability.

South East Queensland is being dubbed the newest investment hotspot nonetheless personal research, and intensive investigation is imperative.

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Tasmania Property Forecast 2020: Top Suburbs and Market Outlook

Rick Nieuwenhoven — Tue, 19 Nov 2019 03:59:32 +0000

Hobart, the capital city of Tasmania, has gained a significant amount of attention from potential investors and first-time house buyers in the past three years. The quaint scenery and quirky architecture and steady economic growth has made Hobart an attractive choice for property buyers.

The market downturn that affected Sydney, Melbourne and other Australian cities had little effect on the capital city of Tasmania. Hobart has experienced the most rapid growth in property prices in recent years, and it still maintains a relatively affordable median house price.

Considering the current market climate, what does 2019 have in store for Hobart?

What Happened in 2018?

Despite the market decline in other parts of Australia, Hobart remained mostly unaffected in 2018. It experienced notable growth, with a strong rental market and steady population growth, Hobart avoided much of the issues that plague Sydney and Melbourne.

QBE’s Australian Housing Outlook 2018-2021 states that Hobart’s median house price was $481,000 in June 2018, a 10.6% increase since June 2017.

The most notable growth happened in Brighton, a 17.3% increase in the past year.

Hobart City recorded a lower growth rate of 6.3% from 2017-2018.

The rental market recorded vacancy rates of 0.7% in June 2018, the same as in 2017.

Hobart Property Market Forecast 2019

Property experts predict that growth will continue in 2019. However, Hobart could experience a slight property market growth reduction in the next two to three years.

QBE Australian Housing Outlook predicts a +8% price growth for 2019-2021, thus bringing the median house price to $520,000. The median unit price is expected to increase to $420,000 which is a +9% rise.

Forecasted figures may vary depending on political climate, economic growth, and bank interest rates. Here are some of the factors that might affect Hobart’s property market in 2019.

+5% – +9% growth if the cash rate remains the same and the economy slows down, and Labor government

+4%- +7% and a 0.20% interest rate increase, no change in cash rate and Labor government

+5%- +9% with a 0.50% rate reduction by banks, and a Labor government

If Labour government is elected in 2019, this could harm the property market; however, as it stands, Hobart’s property market looks relatively healthy.

Top Suburbs To Invest in Hobart 2019

As a potential property investor, understanding the best areas to invest your money is crucial. Here are some of the suburbs to consider when thinking about investing in Tasmania property.

Focus on affordable suburbs north-west of the city such as Glenorchy and Moonah. These areas provide good vacancy rates and strong rental returns. For example, Glenorchy’s rental yields are 5.4% currently, and the median house price is $365,000.

The outer ring suburbs are often the best choice because they offer the most substantial growth potential and they are less costly.

Kingston is a decent option if you are looking South of the city, with strong price growth, affordability, and 4.7% rental yields, it is a viable choice for potential property investors.

Lindisfarne is also a suburb to watch in 2019, North-east of the city, it provides, excellent living conditions, and affordability. As well as healthy rental yields of 4.6%, unemployment and crime rates are relatively low as well as good schools, shops, and efficient transport links, Lindisfarne is another excellent choice for potential property investors in 2019.

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