It’s mid year and many real estate experts still see possible investment growth. In this post, we will make a city-by-city property roundup and some forecast for the rest of the season. So we hope to shed light towards “tenured players” and newbies who want to make their investment worth it.
Outlook for 2013
Many investors saw strong growth in the housing markets last year. In fact, it was one of the best seasons for both residential and commercial real estate investors. This is one of the reasons why home property values are rising in every city—Sydney increased by 14.5%, Perth by 9.9 %, Melbourne also had a huge impact from last year with 9.5%. According to experts, this huge growth has been stimulated by strong population growth, low interest rates, and increasing consumer confidence.
In 2013, Australia’s permanent population has increased by over 400,000—which is enough to populate the city of Canberra.
Price increases yet still affordable?
According to the November H.I.A, despite the housing price increase, most properties in different cities are still affordable. If you want to invest in real estate, you need to track the relationship between mortgage costs and home prices, and household income. Experts are also suggesting to “new players” to monitor different factors such as economic growth and inflation, history of low interest rates and home prices, price adjustment for every location—keep in mind that location is one of the biggest factors when it comes to property value.
Melbourne’s progressive run Median house price: $600,000 – $630,000; 8.5% increase in last 12 months Median unit price: $480,000 – $483,000; 8.7% increase in last 12 months Vacancy Rate: 3.5%
Although Melbourne is one of the most vibrant cities in Australia, some investors still find the growth from last year surprising. Many experts are saying that same thing goes for this year, as the City of Melbourne continues to dominate both residential and commercial property markets. Despite the fact that it is one of the most expensive cities in Australia, the demand for properties does not change at all.
So what’s next?
Despite this huge growth, keep in mind that you can’t just buy any property. You still need to do a lot of research. Real estate is quite tricky. There are many factors that can change the property value. Study the location carefully. Be aware of the risks and make sure to make a solid plan before you make an investment.