2015-2018 Property predictions on growth and the area’s to watch

February 16, 2016,

2015 onwards through to 2018 Property predictions on growth and the area’s to watch.  You will read in the below article that South  East Queensland is certainly a front runner to watch and particularly Brisbane and The Gold Coast.  LV Prestige will bring to you the highest quality properties in the right locations that will perform well for you for the coming years.

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While at some point it may have seemed like prices were on a never ending upward trajectory, as the end of the year loomed closer, even the powerhouse markets experienced a slowdown.

It can be hard to predict what lies ahead, but we’ve asked the experts to have a go and give us their forecasts for the property market in 2016.

John Symond – Aussie Home Loans

“The eastern seaboard has had a big year in terms of housing values led by Sydney, Melbourne and to a lesser degree but southeast Queensland I believe still has a way to go,’’ he said.

“The other states have been very patchy, Western Australia, especially Perth, has been doing it tough, Adelaide has shown a little bit of positive movement, but the pendulum never swings far either way in South Australia.

“The good news is the market is cooling, I think that is terrific, because as far as Sydney and Melbourne is concerned we don’t want these high increases to just continue because that will lead to a correction.

“I don’t see that happening. The steam is coming out and the market in Sydney and Melbourne will revert to a more healthy real estate market and I think that is really important.

Place to watch in 2016: “The best places to buy in 2016 will be inner-city suburbs of capital cities, close to transport hubs, workplaces and amenities. These locations should generate strong income for investors and capital growth for them and owner-occupiers.’’

Another reputable source was quoted as saying- Sydney’s eastern suburbs were the pick of investments for long term growth in 2016, along with the Gold Coast and Melbourne’s bayside suburbs.

“The appeal of the inner city areas over the last decade and more has transformed real estate markets. There is little evidence this trend is not set to continue into 2016 and beyond.

“The eastern suburbs are continuing to set remarkable prices. But the entire ‘ring’ around Sydney Harbour is predicted to retain strong popularity.”

Unlike a number of other commentators, he believes Sydney will lead the way for growth again in 2016, though at a more subdued rate than previous years.

Predicting growth of 5 per cent for the Harbour City, he said that some of the more astonishing sales results of recent years may peter out, but values would regain momentum.

“As the year progresses, price increases will again be a feature,” he said. “Especially if the economy performs as anticipated. The recent rise in the Australian employment numbers is excellent news.”

He tips Sydney for 5 per cent growth, Melbourne, 4 per cent, Brisbane, 2 per cent, Adelaide 1 per cent and Perth to remain flat.

Place to watch in 2016:Sydney’s eastern suburbs along with the Gold Coast and Melbourne’s bayside suburbs.

Affordability, a falling Aussie dollar and the upcoming Commonwealth Games will make the Gold Coast the place to be for property value in 2016.

He predicts 5 to 10 per cent growth, as it takes the lead while Sydney and Melbourne flatten out.

There is great buying in the Gold Coast and in southeast Queensland, from the border up to Brisbane.

While the Gold Coast can expect big things, his outlook is not so bright for the rest of the country.

“Sydney and Melbourne are softening,” he said. “Melbourne will probably suffer from an oversupply in apartments, with a lot of completed developments coming to market.”

Adelaide, Hobart and Darwin are all likely to see a 2 per cent to 3 per cent fall in values, while Perth’s post-resource boom downward trend may soon find a floor.

By all indications suburbs in Sydney’s southwest will do well in 2016.

“The state government’s commitment to infrastructure means there are good opportunities for families to invest in the southwest growth corridor,” he said. “The M5 widening, Westconnex and Badgerys Creek will all have a positive impact.”

Hot tips- Gold Coast – five to ten per cent growth. Sydney/ Melbourne – flat (Melbourne inner city apartments to fall around 5 per cent), Brisbane – flat, Hobart/Adelaide/Darwin/Perth- two to three per cent fall.

Place to watch in 2016:The Gold Coast is the place to be for property value in 2016.

“In terms of southeast Queensland, if you focused on suburbs closer to the Brisbane River, CBD and the Gold Coast markets you’ll enjoy significant capital gain over the next few years.

“We believe Sydney has seen almost all its price growth for the immediate future. I’m predicting that prices will hold around these current levels for the next six to 12 months but there are still pockets of Sydney that provide good value buying. There is a lot of infrastructure activity at the moment which will benefit a number of areas, resulting in growth in those areas.’’

Place to watch in 2016: New South Wales regional areas and southeast Queensland.

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