The New Year has started with a bang for the Australian property market. Some of this noise is good and some not so good.
Mining towns are off the boil and capital cities are heating up. Melbourne and Sydney have been on the run for some time and Brisbane is playing catch up.
So what is the Property Advice view on the market this year?
Positive, if you have a plan and stick to it.
Let’s look at the 3 capitals for the eastern states.
It would seem to us that the larger cities of Melbourne and Sydney are further through their property market swings, than Brisbane. With that in mind, Brisbane should be on your short list to review for the next 24 months.
Queensland regional towns have slowed down with the exception of Toowoomba. However I would be cautious as to what you are still buying in Toowoomba. Much of the (new) property for sale is located on the outer suburbs and would not be on my list for review.
QLD mining towns are a no go, Moranbah, Emerald, Blackwater etc.
Gladstone has oversupply issues and this always affects pricing. It is what happens when the main industry in town slows down. Recovery will happen in time, and maybe if you bought now you will look back in years to come and see it was a great time to buy. For us, the fundamentals have not changed. Still too dependent on one industry for us to recommend it to clients.
In NSW I would be looking beyond the Sydney CBD and to take advantage of some of the suburban growth in the greater Sydney area and also the southern and Northern coasts. Especially the northern coast strip.
I do not really like anything I see in Melbourne at the present time. I think there is an oversupply of both units in the greater CBD area and house and land packages in the suburbs. Melbourne is an active market and you will find this means a bit of hype, so possible cosmetic renos / small ‘pretty’ developments will be the avenues to make the most money. However this verges on property trading and we are focussed on property investment.
There you have it, the no fuss guide to the eastern states. The property market has some confidence and this is reflected in price and activity. So make sure you buy purposefully and with intent.
Since 2004 Scott Northcott has helped hundreds of people make wise property choices. He has been instrumental in bringing positive change to the Real Estate industry through advice based consultation. Real Property Advice is the market leader when it comes to Australian Property Advice.