We have seen huge downs in the Australian property market in previous years. Luckily the drop seemed to bottom out. And after the Federal Election, house prices were beginning to rise. Is it the right time to enter the market now?
With only a quarter of the year left in the year of 2019, are the property prices going to rise? Likely.
Obviously, there are news every now and then saying the market is going to rise. A few days later, some will say it’s not going to. Let’s look for the longer-term, shall we? Property market is not something that you buy and sell in a short time and get big money. Those that did so is called a lottery.
The results of the election, whether you liked it or not, has pushed the market upward slightly, showing good signs. In the late stage of Morrison’s election campaign, the reigning Prime Minister has announced new proposals to help Australians buying their first home. And great property clearance rate followed shortly after the election. The Reserve Bank of Australia has lowered and hold the interest rate at one percent soon as well, further adding confidence to the market.
Previously working at a property developer, we have seen increased interest from first home buyers and investors. These customers came with adequate savings from withholding their intention to purchase a property during the less prosperous time. And recent incentives have encouraged them to look for a property.
The skyrocketed property price by foreign investors has deterred many local buyers. Yet the policies from the returning government has shown benefits and confidence to Australians in pursuing their first property or return to investing.
Time flies since the election but auction clearance rate remained constantly higher than those before the controversial election that will likely see the labours continue to be in opposition for 10 years straight. Melbourne, in particular, saw properties selling well above the auction reserve price.
Looking into the future, Melbourne is predicted to continuously absorb population from other states and foreign countries that bring their capital into the state, further upholding the property market. Malaysians were reported to rise as being the first demographic in foreign home buyers, establishing the trust and confidence of the Australian property market worldwide.
Young adults in Australia are also found to be more attentive to the property market with some purchased their first home in their early twenties. These younger generation tends to take a unique approach to property purchasing, including working extended hours and revitalising the house by themselves.
The previously approved building projects from the price boom are slowly releasing to the property market as well. These houses were built for a higher expected price from the developers. Due to the current pricing, these houses are likely to be unoccupied for some time then see prices being reduced very soon.
The Australian property is looking strong in the future after the past miserable years. Quality developers like Sightstone offer both residential and commercial projects and investment opportunities for you to take advantage of the rising property market.
