Australian Property Market: Surge in Confidence and Unprecedented Price Growth
The week in Australian property with Rasti Vaibhav | 26th April 2024
Boost in Property Sector Confidence
The latest Procore/Property Council Survey unveils a significant rise in confidence within the Australian property industry. Matthew Kandelaars of the Property Council of Australia highlights the impact of stable interest rates and improved finance accessibility on the market's stability.
Despite obstacles like inefficient state planning systems, Kandelaars emphasises the need for collaborative efforts across government levels to meet housing targets and enhance sector investment.
Dramatic Price Increases in Select Regions
Elizabeth North: Up 151%
Davoren Park: Up 142%
Smithfield Plains: Up 132%
Top Picks for First-Time Property Investors
Sydney CBD and surrounding areas like Haymarket as top locations.
Consistent popularity of certain postcodes in Melbourne and Sydney's North West.
An average investor profile: 43 years old with loans averaging slightly over $500,000.
This week on Realty Talk - out tomorrow!
Commercial property can generate steady cash flow over long periods with long-term leases in place. However, there’s a perception commercial property doesn’t perform as well when it comes to capital growth and value appreciation. But does this really hold true? We get the opinion of a buyers agent who specialises in commercial property investment. Also today - according to the driver of the National Property Management Institute and VCAT legislation go to guy, recent rental changes in Victoria have created more problems than solutions.
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Stabilising Construction Costs
According to the CoreLogic's Cordell Construction Cost Index, construction costs are showing signs of normalisation:
Only a 0.8% increase in Q1 2024, with a year-on-year growth of 2.8% in 2023.
Kaytlin Ezzy from CoreLogic predicts subdued cost growth ahead, benefiting from lower-than-average dwelling approvals.
Global Perspective: Australia's Strong Performance
Australia stands among the top four globally for house price growth over the past five years, as reported by the International Monetary Fund. The Australian Financial Review anticipates further price increases:
Expected national growth of approximately 5% in 2024.
Particularly strong growth anticipated in Perth, with a potential 16% rise.
Rasti Vaibhav, The Architect of Property Wealth
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