Australia's Property Market

10 Reasons Why Australia’s Property Market is Making a Big Comeback!

Facebook Twitter LinkedIn Mail Us

Australia’s property market is showing signs of life…

 

The worst of Australia’s property market downturn appears to be over as growth drivers all lined up, buoying both buyers and sellers in the country. 

Recent data shows that housing prices are finally stabilising with five of the eight capitals recording a slight rise in value. Sydney and Melbourne are leading this turnaround. 

 

Housing values Australia July 31, 2019

Source: CoreLogic

 

Real estate economists have offered theories on why the property market is making a comeback this year. There are at least 10 factors driving the property market forward.

Factors Driving Property Market Growth

  • Increased confidence in the government following the Federal election
  • APRA’s change in loan assessment criteria. Banks changing home loan rules will mean mortgages will be easier to get. It will also allow people to borrow more and buy a bigger property.
  • RBA’s interest rate cuts in two successions and the possibility of more to come
  • Tax cuts and the prospect of having more disposable income
  • First Home Loan Deposit Scheme.  Only 5% deposit to get a home loan.
  • The best housing affordability nationally since 2016.
  • ATO’s first home super saver schemeFirst home buyer millennials realising they can use their superannuation fund to buy a home.
  • Short supply of detached dwellings
  • Positive messages in the media stoking consumer confidence
  • The widespread fear of missing out (FOMO)– yes, it’s a thing

 

The upward movement will probably continue as positive media messages coupled with the fear of missing out (FOMO) on buying a property at a time when getting into the market seems perfect.

Though these factors will affect supply and demand and may make getting into the property market difficult for buyers, research by CoreLogic shows the recovery has yet to affect house market values. 

CoreLogic’s head of research Tim Lawless said, “Despite an unprecedented amount of new apartment stock entering the market, Sydney and Melbourne unit values have consistently outperformed the detached housing sector through the downturn, and this trend is continuing into the recovery phase.”

And then there’s the investor segment. Apparently, Internet searches for investor loans went up, doubling its previous weekly volume after the June rate cut

The doubling of traffic is definitely a significant result there – the interesting thing will be to see whether it has any result in the market,” Finder insights manager Graham Cooke said.

“What we’ll see in six to eight to 10 weeks’ time is competition between a first-home buyer market and the investor market, in the sub-$600,000 to $750,000 market,” he said

And he may just be right. 

Disclaimer

 

Need property tax accountants? Contact a Chan & Naylor representative today! We’re always ready to help!

Aside from property tax assistance, have a look at our other accounting and advisory services designed to help you achieve greater financial success. 

If you like this post, “10 Reasons Why Australia’s Property Market is Making a Big Comeback!”, subscribe to our newsletter and stay in touch with us by liking our main Chan & Naylor Facebook page, the Chan & Naylor South West Sydney Facebook page, as well as our LinkedinInstagram, and Twitter pages. 

The Chan & Naylor Group has national offices in South West SydneySydneyPymble and Parramatta in New South Wales, Wheelers HillMelbourneMoonee Ponds and Hawthorn in Victoria, Brisbane and Capalaba in Queensland, and East Perth in Western Australia that can assist you with your accounting needs. Contact us here today.

 
 
 
 

Warning

The material on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs. Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this website are provided for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this website, lnfocus, its officers, representatives, employees and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

Leave a Reply

Your email address will not be published. Required fields are marked *

Join our mailing list today!

Keep up to date with our latest news & updates!