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\nLet\u2019s be honest, 2016 wasn\u2019t everyone\u2019s favourite year (see \u2018Brexit\u2019 and a Trump presidency). Don\u2019t even get us started on \u2018Smashed avocado- gate\u2019.<\/p>\n
Despite all of this, Australia\u2019s property market fared quite well, with the annual growth rate across the combined capital cities at 10.7 percent, while Sydney itself enjoyed a whopping 16 percent growth.<\/p>\n
So, what can we expect to see for our fair city in the year ahead?<\/p>\n
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Rates<\/strong><\/p>\n At its first meeting for the new year, the Reserve Bank decided to keep rates on hold, at an all- time low of 1.5 percent. Despite this decision, and some slight upward movement in bank mortgage rates over the last few months, the cost of debt remains the lowest it has ever been. This means we should continue to see strong housing demand from both owner occupiers and investors, as we move further into 2017.<\/p>\n Dr Andrew Wilson (chief economist at Domain Group) predicts that \u2018rate cuts will remain likely soon, unless the economy improves, and regardless of continuing strength in the Sydney and Melbourne housing markets\u2019. This is good news for prospective home buyers, looking to purchase in the New year.<\/p>\n <\/p>\n Growth<\/strong><\/p>\n Australia\u2019s stand- out market, as always, is Sydney. Comprising one of the country\u2019s most diverse lifestyle profiles, including pristine beaches, a bustling harbor, CBD and suburban neighborhood living, this comes as no surprise. \u00a0John Mcgrath, of McGrath Real Estate, even went so far as to name it the \u2018New York\u2019 of Australia.<\/p>\n Most industry experts are in agreeance that 2017 will largely be another good year for property growth in Sydney. SQM Research\u2019s Louis Christopher forecasts an acceleration of dwelling price rises in Sydney and Melbourne, with Sydney prices to rise between 11-16% for the year.<\/p>\n So, how can a booming Sydney market continue its skyward trajectory? Mr Christopher believes it all boils down to:<\/p>\n <\/p>\n <\/p>\n Supply + Demand<\/strong><\/p>\n 2016 saw quite a dramatic decline in supply for Sydney, particularly towards the latter half of the year. We found this rang true with a lot of our clients looking to purchase homes to live in, or \u2018owner occupiers\u2019 as we say in the biz. Creating fierce competition and causing prices to rise, this made things difficult for buyers to secure a property. Experts aren\u2019t exactly sure what to expect with supply levels this year, but a lack of stock was one of the big issues for 2016 buyers.<\/p>\n Moving into 2017, demand will remain high, with Sydney, and indeed New South Wales, remaining a very in- demand market. If recent auction clearance rates of 82% are anything to go by, 2017 is off to a flying start.<\/p>\n <\/p>\n <\/p>\n Other capitals at a glance<\/strong><\/p>\n House price growth will remain positive in most capitals through 2017, with Sydney and Melbourne leading the pack. Dr. Wilson predicts that the Darwin and Perth markets are set to bottom out in the new year, due to a lengthy period of weak activity, with a return to sustained growth in these cities dependent on improvement in the local economies.<\/p>\n Record new apartment supply in the Melbourne CBD and Brisbane markets will continue to outstrip demand, with apartments representing around 49% of stock for sale in Melbourne currently. This should lead to downward pressure on prices, and present good opportunities for those looking to purchase to live in and can afford to \u2018sit tight\u2019 for a while.<\/p>\n <\/p>\n <\/p>\n <\/p>\n The preceding\u00a0are opinions based on current market conditions, and should not be treated as investment advice. You should obtain advice based on your individual circumstances.\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Just what is in store for one of the hottest property markets in the world? We're glad you asked.<\/p>\n","protected":false},"author":90,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[33,4],"tags":[],"financial_goals":[],"class_list":["post-17816","post","type-post","status-publish","format-standard","hentry","category-finance","category-lifestyle"],"acf":[],"yoast_head":"\n\n
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