The Real Estate Market is about to Boom!
Property experts have been talking about a property BOOM coming to Queensland for a while now, but where is it?
Queensland is expected to experience an influx of residents from Sydney and Melbourne as they head north and settle in the Sunshine State.
Experts believe the Sunshine State looks like a good option to invest and buy property. Experts believe the Sunshine State looks like a good option to invest and buy property as it offers a shorter commute, warmer weather and a lower total cost of living i.e. tolls and parking. Houses in Queensland are also cheaper than those in Sydney, even when you take into account the income difference.
The Deutsche Bank reports the average Sydney home price has risen above $900,000, up from below $700,000 in 2013. However, in Brisbane prices have been steady at $500,000 for more than seven years.
SO WHAT’S AHEAD?
House price growth around Australia has been slowing in recent months, led by Sydney and Melbourne, Australia’s largest and most expensive property markets where prices are falling gently.
That trend looks set to continue driven by tighter lending standards from Australia’s banking regulator – APRA at a time that our banks being allergic to risk following their belting in the Royal Banking Commission, along with weak wage growth, affordability constraints, an increase in apartment supply.
These tighter lending conditions – the inability for many investors who could have in the past borrowed more are really having the same effect as a rise in interest rates – they’ve slowed down some of our markets – especially the Sydney and Melbourne property markets
In short…a soft landing with further price falls in the short term.
Taking inflation into account, modest price declines were forecast in most capital cities over the next 12 months.
And then all capital cities will turn around and show price growth over the next 3 years, but the results will be fragmented.
Speak to an agent at Guardian Group Realty today to find out more.