Episode Details

2018 is going to be a very different year in property, so today we are going to discuss what is happening in each state around Australia and what you can expect to happen in our property markets.

2017 started with a bang and ended in a whimper.

In the middle, foreign investment slowed down, we embraced stamp duty, and hiked land taxes. Other disincentives were given to foreign investors and APRA slowed down lending.

Over the last property values rose 5.5 percent across all the combined capital cities.

As always, the property markets were fragmented. Only Melbourne and Hobart record value growth over 10%. Perth and Darwin's property values decreased.

Once a year I conduct a series of seminars around Australia, and I will be joined by Dr. Andrew Wilson, Ken Raiss, and local property experts. If you would like to attend for free use the Promotion Code Podcast at https://propertymarketupdate.com.au/

Today's discussion includes:

An update on the following:

Sydney Property Market with Ahmad Imam

• There is still good upside for investment grade properties
• The market sentiment is subdued and investors are holding
• Invest for long term capital growth and consider borderless investing
• Prices in Sydney should rise this year, but not as much as the previous 12 months
• You can't expect the same level of growth that we had over the last 4 or 5 years
• There will not be growth in secondary locations. This is a time to focus proven stable locations.
• People are looking at better class assets – a flight o quality.
• There is much less competition for the A grade assets because people are holding.
• Select the right location in the middle rings of Sydney and then find the right property there.

Melbourne Property Market with Kate Forbes

• The fundamentals haven't changed – we'll have another good year in property.
• Last year we had 144,400 new residents.
• There are not a lot of vacancies – vacancy rates are around 1.8%
• The Melbourne property market grew by 10.1% last year
• Finance availability is cramping the number of people that can get into the market.
• Foreign investors have slowed because of finance challenges and new taxes.
• The introduction of a "Window Tax" for properties that have been vacant for six months.
• Will this lead to owners putting them on the market.
• Invest for the long term especially in the inner to middle ring affluent suburbs that are built out and have a reasonable supply cap.
• Growth corridors did well last year. As the markets are slowing these buyers will have more difficulty.
• As things slow down there is a flight to quality.

Brisbane Property Market with Brett Warren

• Brisbane property had an overall growth of 2.45% last year, pulled down a bit by the apartment market.
• But there was solid growth of some housed - even 10 and 15% growth in superior locations
• You need to buy the right property in the right location to outperform the markets.