House prices tipped to jump sharply in the next three years
Housing prices could increase by up to 22% during the next three years, according to a new survey, while the weekend's auction results continue to signal increasing confidence in the property market.
The new BIS Shrapnel Residential Property Prospects 2009 to 2012 report says that "the conditions are ripe for a sustained recovery in residential property prices".
"Low interest rates, solid growth in rents and housing shortages are evident in most markets. However, the current economic malaise will mean confidence will only recover slowly during 2009/10."
The report claims Sydney, Melbourne and Adelaide will record the largest price increases over the next three years at 19%. Growth in Brisbane, Hobart and Canberra is also expected, but Perth and Darwin are expected to experience weaker conditions due to lower spending in the natural resources market.
The report estimates Sydney's median house price will rise from it current level of $530,000 to $630,000 by mid-2012. Melbourne's median will rise from $425,000 to $507,000, with Adelaide's to rise from $360,000 to $430,000.
Brisbane's prices will rise from $391,000 to $455,000, Perth's will grow from $425,000 to $475,000 and prices in the Gold Coast, the Sunshine Coast and Cairns should rise by 14%.
The report claims that most of the growth in the property market is occurring because of first home owners, but that as the economy recovers more investors will enter the market over the next 12 months.
Meanwhile, auction results have recorded more gains over the weekend, giving weight to claims that the property market is beginning to see some recovery.
In Melbourne, clearance rates rose above 80% again, leading Real Estate Institute of Victoria chief executive Enzo Raimondo to comment that "the recent succession of clearance rates in excess of 80% indicates improved confidence levels in the overall economy". The city recorded 448 sales totaling $263.83 million.
In Sydney, the nation's largest property market, clearance rates reached 76%, with 191 properties selling at a total of $121.29 million.
Brisbane clearance rates reached 71%, with 17 properties selling at a total of $8.5 million, while Adelaide saw just seven properties sold at a total of $2.6 million.
Just the marketing ploy to get everyone to buy buy buy whilst prices are low, interest rates are low, vacancy rates are low, unemployment figures are low. So obviously the only way is up.
It takes a little more research on the research to understand the fundamentals as to why everything is 'such a good buy' at present eg median house/unit prices have dropped ie there is no new supply hitting the market. This would suggest that it may be time to buy development sites, get the DA & prepare to build/sell not buy solely for capital growth (but do so if you do not want the development risk).
Rhys_Roberts wrote:House prices tipped to jump sharply in the next three years
Housing prices could increase by up to 22% during the next three years, according to a new survey, while the weekend's auction results continue to signal increasing confidence in the property market.
The new BIS Shrapnel Residential Property Prospects 2009 to 2012 report says that "the conditions are ripe for a sustained recovery in residential property prices".
"Low interest rates, solid growth in rents and housing shortages are evident in most markets. However, the current economic malaise will mean confidence will only recover slowly during 2009/10."
The report claims Sydney, Melbourne and Adelaide will record the largest price increases over the next three years at 19%. Growth in Brisbane, Hobart and Canberra is also expected, but Perth and Darwin are expected to experience weaker conditions due to lower spending in the natural resources market.
The report estimates Sydney's median house price will rise from it current level of $530,000 to $630,000 by mid-2012. Melbourne's median will rise from $425,000 to $507,000, with Adelaide's to rise from $360,000 to $430,000.
Brisbane's prices will rise from $391,000 to $455,000, Perth's will grow from $425,000 to $475,000 and prices in the Gold Coast, the Sunshine Coast and Cairns should rise by 14%.
The report claims that most of the growth in the property market is occurring because of first home owners, but that as the economy recovers more investors will enter the market over the next 12 months.
Meanwhile, auction results have recorded more gains over the weekend, giving weight to claims that the property market is beginning to see some recovery.
In Melbourne, clearance rates rose above 80% again, leading Real Estate Institute of Victoria chief executive Enzo Raimondo to comment that "the recent succession of clearance rates in excess of 80% indicates improved confidence levels in the overall economy". The city recorded 448 sales totaling $263.83 million.
In Sydney, the nation's largest property market, clearance rates reached 76%, with 191 properties selling at a total of $121.29 million.
Brisbane clearance rates reached 71%, with 17 properties selling at a total of $8.5 million, while Adelaide saw just seven properties sold at a total of $2.6 million.
God I hope so; all we do is keep buying. Haven't sold a single thing during all the D&G.
The bigger the footprint, the bigger the gain. Yay!
Another media hype
Few months ago… they are talking about the property price will crash by up to 40%.
Now… will be up by 22…
I believe that price will stagnant or going sideways with trend going downwards for few years till the global economy recovers.
Unless another DOUBLE BOOST by 'incompetent' GOOSE ( treasurer)This is rubbish i think that prices will go down particularly in the first home buyer market that i focus by the end of the year and into early next year. Not a lot but a little correction. None of it worries me anything! I think 2010 seems to be a stagnant year. 2011 and 2012 will not be anything sprecial so i think 5-7% each year from the end 2010 would be lucky,… that adds up to 10-15% growth to 2012.
Trying to read the market is harder than recognizing a trend. Australia has a very stable and has a somewhat predictable economy. Interest rates go up and they go down, share prices do the same and although property prices fluctuate they remain, for all intents and purposes the strongest asset class – in my opinion.
The population is growing and the demand for residential property is always increasing (at various rates). Anyone that applies due diligence to their property investment strategy can, I believe; do very well in the years ahead.
I personally have an investing window of a minimum 20 years. Thats the earliest i would start to want to cash in on investing. So if you plan long term you should be fine. Like many say. Do you really care if your $300,000 house drops to $275,000 in the short term when in 20 years it is worth $1,000,000.
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