With a new year underway, it’s a good time to take a look at property markets around the country with fresh eyes. As anyone who’s ever seriously considered purchasing their own property knows, being prepared and staying informed can be the difference between nabbing the house of your dreams, or missing out.
To help you set yourself up for a great year in property this 2018, we’ve asked Steve Jovcevski, property expert over at financial comparison site mozo.com.au, to share his predictions for what the year has in store in each major city. Here’s what he had to say.
In all likelihood, some spots around the country are likely really going to pick up, for example Hobart, which already experienced growth of 12% in 2017, could see as much as 10% growth over the next year. High rental demand and a growing local economy are boosting this southern city, so it’s one I’ll have my eye on in 2018.
Canberra is another city likely to have a strong 2018, with about 7% growth on the horizon. With low vacancy rates and a relatively high number of people moving to the city for work, Canberra is still a strong prospect those looking to invest in a property and earn reliable rental returns.
Throughout 2017, I’ve called Melbourne a first-home buyers market, thanks to it offering more reasonable prices than the booming Sydney market and a steady population growth to the city. I’d expect it to be much the same situation in 2018, but while last year saw Melbourne enjoy bumper 10% growth, this year I’d forecast it to slow down to between 5% and 7% growth.
On the other hand, Adelaide is set to see a steady growth of around 3-4%. This relatively low growth is a sign of a continually stable market, making it worth a look for risk-averse investors, who aren’t interested in riding the peaks and troughs of more volatile markets.
For Perth, which I’m predicting will have a similar growth rate of 2-4%, this modest growth is good news, as it represents a turnaround from the tough few years the market saw after the mining collapse. Steady population growth and affordable housing prices are buoying interest in this city as the local economy starts to recover.
Brisbane is likely to see a slow and steady, moderate growth of around 5%, again partly because housing is more affordable here, and buyers who have been pushed out of hotter markets may turn to Brisbane for cheaper options in 2018.
The only market I’d expect to actively slow down in 2018 is Sydney. The red hot market in this city already started to slow and plateau in 2017, and with clearance rates down and a higher than average supply of properties, I think this year that trend will continue with a drop of about 5%.
That’s welcome news for first-home buyers who were priced out of the Sydney market for much of 2017, but keep in mind that there likely won’t be a major downslide in Sydney prices or demand just yet. Instead, this is the beginning of a correction, bringing the market back down to a reasonable level, after the crazy price points and demand it reached in past months.
Steve is a property investment expert home loan negotiator over at financial comparison website mozo.com.au. With an extensive knowledge of home loan products and property trends, Steve is full of practical tips to help investors build and get the most out of their property portfolio.