Based on the National Australia Bank, Residential Property falls as house price soften and rent weakens. The survey was released last Wednesday, January 21, 2015. The survey shows that there will be a slow price growth. For the past 2 years, Australia-wide property confidence had recorded high levels. But due to, slowing population growth and some industries are weaker, the survey found that the confidence getting slow. Despite the lower confidence, these are signs of confidence like a strong performance in market activity. There are negative results based on the survey because some states weaken especially the rent. The survey shows house prices rising fastest in Brisbane (6.4%) and Perth (5.6%). If there will continue for the coming months, residential housing market may continue to sluggish. However, this perception will change if the house price growth remains to continue. The following factors may influence and help housing market become more competitive when unemployment decreases, confidence level will become stronger and population growth continues to rise.

Residential Property Survey Q4 2014 (Overview).pdf (465.82 kb)


Comments(0)



According to SQM Research Managing Director Louis Christopher, “He expected 2015 to be another positive year for residential property owners.”

 

There will be an expected rate cuts happen probably in the 2nd quarter of the year. When it happens, there will be a big possibility to boost the housing market. However, interest rate cuts could spark a housing bubble and lots of signs run out of system. Most capital city prices rose last year but it may cool down due to slowing foreign residents and investors. Financial Support is one of the reasons why the property investment slump. We expected a potential fall in housing market in Perth home values and some of the property prices of all capital cities.

 

According to Michael Janda, “It appears the housing investment boom may have peaked and that’s largely because we’re stock in debt traps and it makes little financial sense to invest in property in Sydney and Melbourne anymore.”

http://www.abc.net.au/news/2015-01-14/janda-a-cool-change-blows-across-housing-markets/6015660


Comments(0)