National property market doesn’t exist
August 4th, 2016 by Geoff Baldwin
National property market doesn’t exist …
With each state and territory being so different in regards to current market conditions it is no longer relevant to talk about the Australian real estate market as a collective and this should be considered carefully by would be property investors. It is fair to say that the market in NSW and Victoria remain very hot while WA and SA are slow and QLD is somewhere in the middle. Understanding this and the economic cycle can enable prospective investors to time their purchases to maximise capital gains.
No consistency in national market
The days of referring to the condition of Australian real estate as just one big market are well and truly over and this is a fact that should considered carefully by real estate investors according to
RE/MAX WA MD, Geoff Baldwin.
“It is not since the recession of the late 1980s, early 1990s that we have seen all states reflecting similar results across the board, he said.
“During the recent booms of Sydney and Melbourne and all the hype that has gone with that, we have seen SA, WA and NT in decline and Queensland doing little more than holding its own.
“Now as those booming states start to slow the overriding commentary is that “the” real estate market is cooling which is a lazy generalisation that should be examined carefully by property investors.
“While over time a national trend does exist, year by year
each state and territory has shown to be a market in its own right and all indications are that this will continue.
“While most projectionists would agree that the Sydney and Melbourne markets have or are reaching their upper limits, markets such as WA, QLD, NT and Tasmania are
offering comparatively good value in both return on investment and price.
“Perth has been affected by the downturn in the resources boom as that sector moves from construction into production and due to the current price of iron ore but will this override the positives in that market in the medium term?
“Australian buyers have proven to be extremely resilient and also to have short memories when it comes to negative influences and hence the more affordable states may bounce back more quickly that many think especially now that investors are looking for alternatives.
“Having been dealing
with investors and having sold new and established properties in multiple states over the past three decades it is my observation that property buyers need to consider each state and territory in isolation when considering where
to invest and that right now, there are places to buy and others to avoid.
“Overall, savvy property investors who are prepared to take a wider view will always find good, solid opportunities in some areas even though the market may be on the slide in others”, Baldwin said.
Media Contact – Geoff Baldwin