News headlines speak of property market declines. However, with the right advice, investing in a falling market makes a lot of sense. DPN’s Sam Khalil explains why.
After observing several property market cycles across twenty-two years in business, DPN puts the latest fear-inducing headlines into perspective. Contrary to what news bulletins might suggest, the falling property market isn’t a nationwide phenomenon. Smart property investors can look past the news to find strong opportunities in any market.
Property prices in Sydney and Melbourne have most certainly fallen in the last six to twelve months. However, in the rest of the nation falls are barely notable. Capital city markets such as Brisbane and Adelaide remain relatively stable, while regions of Hobart, Canberra and Victoria (Melbourne excluded) have skyrocketed.
Property market context
To put the negative headlines into context, our largest cities of Sydney and Melbourne have a more significant effect on the average national property price. Over the most recent long-term cycle of five to eight years, house prices in both cities have grown much faster than the rest of the country. When abnormal growth occurs, it’s likely to fall back or ‘correct’ to the average, over time.
There is no single property market
The term ‘property market’ hides an obvious fact. That is, there is no such thing as a single property market. There are over 8,800 suburbs in Australia, each with poor, promising and even fantastic opportunities for property investors willing to do the work in finding them. For example, a suburb with good infrastructure, a central location near the CBD or beach and a strong community are attractive in any market.
The challenge is in locating them and staying well-informed, in order to act on the best opportunities when they arise. The key is in research and expertise. With the right tools and advice at their disposal, property investors can take advantage of markets like today for long-term opportunities that deliver strong returns for years to come.
For more comprehensive information, see DPN’s article: The Market is Falling! So Why is it a Smart Time to Invest in Property?
You can contact DPN for investment opportunities in emerging growth areas.
Disclaimer: Chan & Naylor take no responsibility for the accuracy of any research material of contributors to our newsletter. Contributions to our newsletter such as this article, “The Market is Falling!” So Why is it a Smart Time to Invest in Property?”, are meant to be educational only and Chan & Naylor does not endorse any promotional material promoted in their articles. Readers should do their own research to determine the accuracy of their material.