Here are some recent items which largely support what we have been saying in relation to what is likely to happen in the residential property market over the course of 2014.
We saw some very strong gains over 2013, particularly in Sydney and to a lesser extent Melbourne and if you watch the interview with Charles Tarbey, the Chairman of Century 21, you will see that they are anticipating some similar outcomes as the state capitals that have lagged behind play some catch up in price movements and we see a moderation of the rate of price appreciation in the others, particularly Sydney.
“The fundamentals remain attractive for select inner city markets and Brisbane still enjoys a lower median price than the other metropolitan markets in Australia,” Mr Smoli from Aviate Property research Group said in the report.
“Add to this comparative affordability the fact that average incomes in Queensland surpassed those of New South Wales and Victoria over the course of 2013, according to the ABS, as well as the weight of infrastructure commitments in Brisbane, including the second runway planned at Brisbane airport.”
The other article gives some statistics from a survey performed by Slater & Gordon’s Conveyancing Works, which I thing would actually vary to quite an extent depending on which State this is performed in, but isn’t actually addressed. However, I think it confirms the view we have held for some time that if you are looking to invest in the outer suburbs of the major capitals, or in regional areas that are suitable investment locations, it is better to look for a house and land proposition rather than an apartment or townhouse as the future tenant is statistically far more likely to desire this.
Lastly, it looks like the potential interest rate cut that could have been on the cards in the first half of the year may now be further away due to the latest inflation numbers that came out this week. Here is the view from AMP chief economist Shane Oliver who said employment is a lagging indicator, with the December figures reflecting the soft economic conditions and bleak outlook seen around the middle of last year.
“With more forward-looking economic indicators showing signs of improvement, for example housing approvals, retail sales and consumer and business confidence, jobs growth should start to improve by around mid-year,” he said.
Citing the recent fall in the value of the Australian dollar and increasing signs that the economy is now responding well to current policy, Mr Oliver predicted the cash rate would remain steady at least until September.
|Brisbane to overtake Sydney and Melbourne|
|Tight supply and high demand are expected to push Brisbane’s property market ahead of Sydney and Melbourne’s markets over the next year.|
Australian property buyers are willing to sacrifice living within reach of cities if it means owning a property with a backyard, according to new research. More >>>
For a look at what to expect property-wise in 2014, Century 21’s Charles Tarbey joins Broker TV.