The housing market in Sydney and Melbourne is continuing to look ordinary for existing property owners wanting to sell. The drop in those two markets is predicted to be 10-15% by the end of 2019.
Sydney & Melbourne Housing Market 2019
The fall is seen by some as a correction to an overvalued market. For instance, a report by Citigroup states that though the drop will continue for a while, adjustment to it will be “manageable”. It’s also likely that the state of the property market will encourage the Reserve Bank to keep interest rates low in the coming year.
Demand and supply are still the foundation of property investment, and the factors that influence both vary from location to location.
Another influence is the more nebulous mood of the prospective market. The quality of information and thinking that goes into news reporting and analysis can result in pundit assertions that are not fully supported by the facts. Either too much optimism or too much pessimism can affect the confidence people have in the property market, and prompt decisions that lack a solid foundation.
Australian Property Market
In the current situation, investors need to look at the wider Australian market, rather than focus solely on what’s happening in our two largest cities to look for opportunities that balance the best of supply, demand, and sentiment for property that offers good prospects for growth and income.
Some smaller Australian cities are growing strongly. An October report by realestate.com noted that demand was strong in South and West Hobart and Battery Point in Tasmania, and the South Australian suburbs of Aldgate and Crafers West were also looking good. In New South Wales and Victoria, regional areas like Warragul, Geelong, Kiama and Orange are growing.
Property investment doesn’t begin and end with the largest cities. Growth in regional centres and a clear-eyed assessment of their markets offers opportunities despite the predicted falls in Sydney and Melbourne.
If you are thinking of buying or selling property or you are unsure of how well your property portfolio is positioned in the current changing market, contact United Global Capital today on 03 8657 7640 or email [email protected] for a no cost, no obligation consultation and learn how you can position yourself for success.