…..the articles, the news stories, the talk, it is impossible to avoid. The national property market has crashed and burned over the last 12 months. Australia has just marked its twelve month anniversary for housing correction and is down (only) 2.7% since peaking last year. And some media outlets are shouting it to everyone and anyone that would listen. Help, we are all going to perish!
But if you asked us. Is now a good time to buy?
The answer is still positively yes.
But why?
According to Corelogic, Sydney and Melbourne equate to approximately 60% of the value of the national housing market and the negative growth they are experiencing in some suburbs is dragging the national average down. Whereas, Brisbane, Adelaide, Hobart and Canberra whilst smaller value markets, are still recording growth overall. What can keep the property market growing?
The pillars of a strong property market are still in place:
• Strong population growth – Queensland is the most popular destination for people moving from other states, according to the latest population figures released by the Australian Bureau of Statistics. Queensland recorded a net interstate migration gain of 24,000 people, Victoria was the next most popular state, with a net gain of 15,100 people. Net overseas migration added 236,800 people to the population and accounted for 62 percent of Australia’s total population growth. NSW continues to top the polls though with the highest population.
• Low unemployment – Australia’s seasonally adjusted unemployment rate stood at 5.3 percent in August of 2018. The jobless rate remained at its lowest level since November 2012, according to tradingecomonics.com and ABS.
• Low-Interest Rates – The Reserve Bank has left official interest rates on hold for a record 26th month at a record low rate of 1.5 percent in September. Though some lenders are raising their rates out of cycle of the RBA.
• Infrastructure growth – There is significant infrastructure growth being built or planned around Australia. For example, more than $100 billion worth of new roads, rail lines, hospitals, skyscrapers, prisons, wind farms and other infrastructure is being built or planned in Victoria as the state’s surge in the delivery of major projects gathers pace. Sydney is developing light rail and satellite cities. Adelaide has won a $50 billion contract to build Australia’s new submarine fleet. And Queensland state budget has $45.8 billion pinned for infrastructure development over the next 4 years.
Media has to talk about something we suppose.