Property Outlook for January
According to CoreLogic RP Data, the rate of capital growth is set to remain at a moderate level over the year, especially for Sydney and Melbourne. This could mean good news for other Australian property markets as investors looking for a good investment and those who are becoming priced out of the Sydney and Melbourne markets start to look elsewhere.
Over the course of 2015 house values will continue to increase, but at a much slower rate of growth than last year. RP Data believes that these home values will keep on increasing until interest rates start to pick up.
Currently, for January 2015 Sydney remains at the top of the leader board with the most expensive property prices averaging at $731k with a 12.4% growth rate. Melbourne takes second place with the median value of a property at $587k and a growth of 7.6%. Brisbane however has the third highest growth rate of 4.8% and remains an affordable option with home values at $467k and this is one city that investors are flocking to to take advantage of the affordability and potential growth rates that are likely to come, especially as Brisbane is in a rising market whilst Sydney is at the peak of its property cycle.
Elsewhere in the Australian economy the mining investment is slowing down, whilst the construction and housing sector is picking up. On a global level, the US economy is also starting to pick up whilst the Chinese economy is slowing down with house prices also falling in China which might raise some concerns.
Another concern to bear in mind is unemployment rate which is gradually increasing and has an effect on the property market. With a higher level of concern about job security, people will become more concerned about their money and spending habits and may become more reluctant to invest in a property or worry that they won’t be able to make their mortgage repayments.
Published on 14th of January 2015 by Marty Stanowich