So far, has anyone noticed that this year is a very complex year for Australian real estate investors? This is currently two half-true stories.

On the one hand, Perth has signs that he flattened for a week and sank the next week. Vacancy rates in Perth have historically been very high, market inventories are increasing and there are no signs of an immediate decline. Commentators (some with vested interests) told investors that the worst was behind Perth’s housing market and now is the time to negotiate at the end of the cycle. Are they right? We are watching the Perth market very carefully, but we are not sure that prices will rise in the near future. (Remember, everything is good and it’s good to buy at the bottom, but there were a lot of investors who bought at the bottom and waited for years for the property to go up.) Wants to see signs of growth before starting a purchase. We believe Perth encountered many obstacles before the start of the next growth cycle.

And what about other small markets in Adelaide, Canberra, and Tasmania (I call it Tasmania because Tasmania is a very small market). This year, Adelaide, Canberra, and Tassie showed relatively strong performances. In particular, Canberra and Tassie’s settlement rates showed solid numbers with a few discs in the first place. What does the market have in the short and medium-term?
Looking at Canberra, the same relatively low inventories are on the market and demand is reasonable, but Canberra’s election year is always questioned and influences election sentiment. Investor for public sector work.

Adelaide has proven for decades an average annual growth rate of 3-4% (30 years on average), never actually above or below other markets. Some obvious obstacles to the Adelaide market over the next few years are the imminent closure of some large manufacturing plants, and net immigration figures show no signs of increase. This keeps demand relatively low and buyers continue to have a wide range of options. Adelaide’s middle and outer ring vacancy rates also seem to have been a bit soft for years.
Tasmania has shown very strong growth over the last 12 months and the data continue to show good growth. Tasmania’s key is to invest in essential housing in the service sector. Areas with large employment centers (public and private sector). Although the number of immigrants has not increased significantly, Tasmania is relatively affordable and has one of the lowest total mortgage debt-to-income ratios in the country. Tasmania’s biggest barrier, in the long run, is work, but in the short run, there are good signs.
And what about the Big 3? The cities of Melbourne, Sydney, and the eastern part of Brisbane are currently in the distant stage of change.

Melbourne has overtaken Sydney and is the leader in auction settlement rates this year, but there are some real warning signs to Melbourne inside and outside the circle. We’ve all heard about the problem of oversupply of units in South Bank and Docklands, but we’re also seeing difficult times in the more affordable suburbs. Especially in the direction of the Western Corridor and Geelong, along with the approval of housing and inventory levels, it threatens the closure of automakers. Fluctuations will be seen in Melbourne years ahead.

Sydney really acted like a teenage rock group (stones and diamonds) this year. In some suburbs, especially in the east, far west, and south, it shows strong clearance figures and limited vacancies. However, some stars in the northwest, west, and southwest have softened, and the number of settlements has declined significantly since mid-2015. Investors have left the more affordable market and are now paying attention to Brisbane. I think Sydney is in a sustainable phase over the next three to five years with some small growth and small price cut patches. We see Sydney as having a very strong migration rate to sustain demand in the medium term, which will be a decisive factor in keeping Sydney in a comfortable position for decades to come.

Now for Brisbane. For relentless real estate news readers, they would have seen Brisbane as the next booming suburb as early as 2013. Well, it didn’t really grow. It was late (I like it). Brisbane has several different obstacles. As for the inner ring, there is a problem with the supply of the unit, and no improvement is seen in the short to medium term.

Central and some outer rings, both north and south/southwest, enjoy solid growth, and selective purchase of these rings 15-30 km from Brisbane is good for the next five years. You can see the results and good performance. The real risk we see lies in unplanned housing and lot packages in both the north and south. The supply problem is because it doesn’t justify a comparative price of $ 100,000 compared to a home three to fifteen years ago.

In short, as usual. The Australian real estate market can be compared to many analogies. Within the market, There is a market within the market. Therefore, before investing, make sure you have a clear goal and why you are investing here or there. It gives you confidence and makes you a better investor.

Please visit www.equimaxpropertygroup.com.au or call our office to be connected with an accredited and independent Property Investment Advisor on 1300 943 232