Sluggish House Price Growth Expected For SA
Date: 14/04/2014
Of all the property markets in Australia, my expectations for house price growth is least positive in SA.
The political instability that will exist with a minority government, coupled with the recent significant increase in unemployment, coupled with the closure of the Holden factory, all combine to dampen consumer confidence and demand from housing speculators and home buyers.
Investors are cautioned to reconsider their property portfolios, and to ask ‘if the property I own is performing poorly now, how much worse will it perform in a flat or down market?’ Such assets should be considered for sale and the proceeds redeployed.
Of course, opportunities to manufacture equity profits will remain for those investors who are able to create value by solving housing problems cost-effectively. It is the passive investor looking for broad market gains that should beware.
What say you?
– Steve McKnight
The political instability that will exist with a minority government, coupled with the recent significant increase in unemployment, coupled with the closure of the Holden factory, all combine to dampen consumer confidence and demand from housing speculators and home buyers.
Investors are cautioned to reconsider their property portfolios, and to ask ‘if the property I own is performing poorly now, how much worse will it perform in a flat or down market?’ Such assets should be considered for sale and the proceeds redeployed.
Of course, opportunities to manufacture equity profits will remain for those investors who are able to create value by solving housing problems cost-effectively. It is the passive investor looking for broad market gains that should beware.
What say you?
– Steve McKnight
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I think SA will take the title of worst state property market off Tas in the next year to 18 months, I only say this because Tas have a new state government that will get that state moving again.