At the end of each year, experts and big names within the real estate industry tend to make property market predictions for the following New Year.
And as December 2015 rolled in, so too did flat dwelling values across combined capitals, with CoreLogic RP Data for 2015 revealing the complete 2015 calendar year results showing the lowest rate of capital gain over a calendar year since 2012.
In 2015, dwelling values fell by 3.7% in Perth and 3.6% in Darwin, and were recorded as the largest falls across all eight capital cities.
So after the first half of 2015 saw double-digit price growth for some (guess who…Sydney and Melbourne) and a tough year for others (Yes…Darwin amongst others), all markets are now set to continue to cool.
It is fair to say that the Australian housing market was on track for a fairly bad hangover as 2015 very quickly ticked on over to 2016!
We would like to point out that fluctuation in the market is inevitable! So in light of pulling out the positives, below we have set out what good could potentially come out of the current climate.
For the renters
A recent report has shown Australian capital cities as displaying the lowest rate of rental growth in records dating back two decades.
With those renting in Darwin and Perth procuring the biggest benefits, rents have fallen by 13.3 per cent and 8 per cent respectively over 2015.
The forecast in the rental sphere, according to CoreLogic, is that rental growth in both of these two cities will continue on this downward slope before any improvement is seen.
This will ultimately mean more choice in the Darwin market for renters.
For the investors
First home buyers will have an opportunity to come back to the market, with this slowdown in domestic property investing.
Holiday homes have been tipped as the type of property to take off in 2016. With steady flow of foreign tourists, in particularly to coastal areas and a rise in domestic travel, a newly created need for short term holiday rentals will be in demand nationally.
For those looking at investing for their retirement, this could be a good time to buy a future retirement home and let it out as holiday accommodation for the time being.
For those looking at selling
Let’s not forget the large percentage of overseas buyers! And the buying power of this segment will remain fairly significant.
With prices on dwellings decreasing, some sellers will have the opportunity to trade out of their current dwelling and into a new home.
Need to chat about buying or selling going forward in 2016? Give us a call on (08) 8932 8858.
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