Property Market Predictions 2019
One of the biggest concerns right now among property investors is whether it’s smarter to invest now or after Brexit, especially because of the trade relationship Australia has with the UK. The UK is technically Australia’s 7th biggest trading partner, and with Brexit happening, it sure will have some impact on the market. Brexit negotiations are still in negotiations, but what would it mean for the property market in 2019?
What is in store for the property market in 2019? Here are some predictions by experts in terms of how the property market movement and prices will change this year compared to last year.
One of the things investors should look out for and probably anticipate is that the price decrease will go on until the first half of 2019. House hunters and investors may see some modest growth in prices, which could only result in a 1 percent growth, and about 4 percent in the following year. In terms of holding up, unit prices are expected to be better than house prices and are expected to grow by 2 to 3 experts predict. As mentioned before, banks have become more cautious and have caused the lending conditions to have tightened which affected the market in a huge way. Lending has dropped and so has the market price. Experts predict that there will be a whole new standard of lending in 2019, which investors and buyers should adjust to.
With the creation of Tenant Fees Bill which seeks to reduce the costs tenants have to pay including the decrease of security deposits, experts predict that increase in demand may happen, however, it’s not necessarily good news for landlords. This bill will oblige landlords to cover fees for inventory checks and would offer almost no protection in terms of now capped security deposits. This could scare any potential landlords away and if this would be the case, it could create larger consequences. We can say that this is both good and bad for the property market industry.
Technology has changed the way industries work nowadays, and PropTech is just one of the biggest things the real estate industry has experienced recently. First off, what is PropTech? PropTech is basically a term that covers real estate technology that is applied to or used for the market. It could be a specific software, hardware, and manufacturing materials. PropTech is seen to continue to transform the property market industry and is seen as a market opportunity for many landlords. One example of proptech is blockchain.
The property market industry may experience difficult times in the next couple of years especially because of Brexit. But it’s not all negative because it could also mean lower asking prices which would open opportunities for first-time homebuyers. 2019 may be a healthier property market industry.