2018 Property MARKET TRENDS
The first quarter of this year is over and we just approached the second. But it is not too late to talk about the trends property market will be seeing in the next few months. Many predicted that house prices will increase by 2017, but it turned out to be much higher. Now that 2018 is seeing a more stable price growth, what could be the trends that could potentially shape the property market throughout the year?
One of the property market trends analysts are seeing is the end for property price growth especially in Sydney and Melbourne that many investors or buyers experienced over the last five years. However, as for the interest rates? Analysts are seeing no changes. Because the economic standing of Australia is performing below its potential, increase in interest rates is difficult to justify. This also means that because banks are in a healthy financial situation, loan defaults are at its lowest.
The growth in the creation of jobs will continue this year. Last year, Australia produced 335,000 jobs and it is highly likely that this year will create even more. It is also predicted that the population will continue to rise, which means, the demand for housing will most likely grow as well. A prediction of growth to over 172,000 or 5% increase is also made with Victoria as the state with the fastest growing population, mainly because of overseas migration.
This year, Melbourne will remain to be the best performing market with growth up to 10 percent, while Brisbane will level up in terms of jobs and infrastructure growth. Houses are still expected to perform better than apartments all throughout the year. Although the oversupply of apartments especially in Melbourne and Brisbane is possibly over, investment in rental housing is most likely going to be a trend this year. However, the conditions for investors will be tougher for them and get a loan is probably one of the biggest challenges. Also, the ‘build to rent’ trend will continue this year.
Lastly, one of the possible property market trends this year is the weakening of secondary materials that seemed to have been rampant over the last few years. This is because some investors chose to purchase property according to their budget without considering its quality. This year, more and more investors will make sure that only the best properties will see the light of day.