The Real Estate Buyers Agents Association of Australia (REBAA) today revealed its predictions for the property market for the coming spring selling season.
Predicting a relatively subdued market on the back of a slow paced winter and an uncertain election outcome, the Association said:
Historically, the busiest selling periods are generally late summer and early autumn (February to April) and the spring months. House prices in New South Wales predicted to stabilise over the spring months as a larger number of new listings come onto the market. In general terms, the property market will be moving forward but at a subdued pace with prices being more regulated by affordability concerns of buyers.
REBAA President, Mr Byron Rose said he expected a late start to the spring selling season due to last weekend’s election. “Historically spring is the time that the property market moves up a gear,” said Mr Rose. “The hung parliament will no doubt postpone the start of the season but we are predicting good stock levels throughout the coming months after a delay by vendors to list due to the election. The market may still be soft with demand light on so vendors may need to readjust expectations amid a high level of market uncertainty amongst home buyers.”
Rich Harvey, CEO of Sydney-based buyer’s agency Property Buyer and NSW state representative for REBAA, believes the spring selling season will be a fairly subdued affair for NSW. “February to May saw significant market activity and price rises but with the onset of winter, the market has taken a breather,” said Mr Harvey. “Consumer confidence still has some way to go, unemployment is declining and interest rates are on hold for the time being. Essentially I see the pendulum swinging back in favour of the buyer for the Sydney market as more listings means more competition amongst vendors. “Prices are unlikely to decline, due to the significant undersupply of around 25,000 dwellings per annum in the Sydney market and constricted land supply (as well as slow planning decisions by local councils).”
Michael Ramsay, Principal Michael Ramsay Property and VIC state representative for REBAA, said that while Melbourne had eclipsed its rival capital cities for capital growth for the year ending 30 June 2010 with a massive 27.9% hike, this trend was not likely to be sustainable. Mr Ramsay predicted home prices to steadily maintain momentum with growth in the vicinity of 8-10% per annum and unit growth of 6-8%. Auction clearance rates would hover at 70% and rental vacancy rates would remain at 1.5 – 2%. “Becoming more common is the enquiry for commercial property,” said Mr Ramsay. “With capital growth nearing a parallel with residential property, net yields of 5%, 5-10 year leases and mandatory annual rent increases of 3-4%, a commitment into the commercial arena especially for the time poor buyers is seen as a viable and attractive option.”
Liz Wilcox, Principal Hot Property Specialists and QLD state representative for REBAA, said Mum and Dad investors were now looking at key regional areas in Queensland which were set to benefit from federal and state government funding over the coming years. Areas which had levelled off over the 12 months but were set to move forward include Toowoomba, Gladstone, & Bundaberg. Key areas to watch included Meadowbank and adjoining suburbs, along with Cannon Hill, she said.
Chris Waterman, Principal Waterman & Waterman and SA state representative for REBAA, said confidence in the South Australian property market was returning with Adelaide’s median house price reaching $410,000 in the June quarter, breaking the $400,000 barrier. Also in the June quarter, a record number of properties were sold across the state for more than $1 million and a record sale of $6.5 million was achieved. “This spring, opportunity exists for the first home buyers and investors in the southern and northern suburbs of Adelaide where stock numbers are up and volumes down,” said Mr Waterman. “With rental demand high, low vacancy rates, affordable prices, a sound economy with a great forecast, makes South Australia the ideal market to buy this spring.”
Rob Zubin, Principal My Property Hunter and TAS state representative for REBAA, said many vendors were waiting for spring to list their property for sale in Tasmania. “The hung parliament for Tasmania and then the hung parliament for the federal government seem to have had an impact and generally slowed down activity,” said Mr Zubin. “Early indications are that the spring will bring new confidence and I see strong activity in both Hobart and Launceston where property will become more available as the market shakes off the cobwebs of winter. “With marginal increases expected over the short-term, investors will still be able to secure well priced property for under $300,000 to achieve a balance of growth and return. I expect growth of around 7-8% p.a. with returns in the range of 5-6%. Strong demand for rental property will continue vacancy rates to hover at around 2%.”
Daren Schneider, Managing Director Heron Todd White Property Advisors and WA state representative for REBAA, said there was currently a high level of market uncertainty with many homebuyers still experiencing difficulty obtaining finance. “Investors have begun to return to the WA market taking advantage of considerable price corrections in some suburbs in recent months and historically still attractive interest rate levels,” said Mr Schneider. “WA has the highest population growth (as a percentage) and lowest unemployment rate in Australia along with a booming resource sector, so the fundamentals for future property price growth is there. “Buyers need to remember that property markets are cyclical. Timing will only become a factor if you are a short-term investor.”
More information contact:
Byron Rose
REBAA President
Ph: 02 9327 6944
Mob: 0411 694 081
About REBAA
The Real Estate Buyers’ Agents Association of Australia (REBAA) was founded in 2000 to raise the profile of buyers’ agents nationally and to establish guidelines for the professional conduct of real estate buyers’ agents. REBAA maintains a close working relationship with the state-based Real Estate Institutes as well as the national body and makes regular contact with other organisations to represent the interests of its members.
For more information go to www.rebaa.com.au
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Tags: buyers agent, Property Predictions, REBAA
