The real-estate markets already off to a great start in 2014.
In 2013 RP Data recorded an average increase of 9.8% across Australia’s capital cities, driven primarily by historically low interest rates.
With these low rates still very much in effect, the renewed confidence and enquiry in the property industry and the fact that property has never been more affordable to purchase in Australia at any point in the last 20 years, 2014 looks set to be another strong year.
An overview of the Australian real estate market
Economic recovery and confidence has allowed more people to become property owners over the past few months. An increase in jobs and a steady unemployment rate across Australia’s major cities will drive many of us into purchasing instead of renting in 2014. Take a look at 5 Australian suburbs set to surge in 2014.
Some key factors that are expected to contribute to the strength of the market include:
- A positive outlook from both property owners and tenants
- An increase in the number of commercial spaces that are being converted to residential buildings
- Steady increases in the cost of residential properties
Real estate trends in major Australian cities
Looking at the current climate of Australia’s major cities can help buyers decide which markets may be right for ownership and investment.
Sydney is expected to see housing values grow by 10% throughout the year. Increases in the month of March are likely to be between 0.5 and 1%. The property market surged at the end of 2013, so buyers can expect prices to continue on a sharp incline throughout the beginning of 2014 with growth to settle by mid-2014.
Melbourne will continue its recovery in March as the over supply of properties seen throughout 2012 and 2013 are absorbed by the market. More people are moving to the city to take advantage of low interest rates, so buyers can expect competition to be fierce but worth the fight.
Brisbane is a city that has seen slow growth over the last 10 years in comparison to Australia’s other major cities. Great deals can now be found in outlying suburbs around the city, and investors may enjoy high rates of return once the steady growth of the city’s real estate market reaches these suburbs.
The powerhouse, which is Perth, is expected to perform reasonably well yet again this year, with industry professionals predicting property price growth of at least 5%.
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The information provided in this article is of a general nature only and in no way constitutes legal or professional advice, or specific advice in relation to any finance. In all cases we recommend you receive professional financial advice for your own personal circumstances.