Investors are back. They were responsible for a 30% increase in the home loan market this year. First home buyers represent only 12.2% down from their typical 20% level. Owner occupied levels are pretty stable. It’s not surprising that property looks a good place to invest with interest rates at low levels and inflation stable at under 3% . Sydney home prices have increased by 15.6% in the past year (ABS June14).
In Newcastle we have seen some beachside homes selling for more than $3M and this sector is steady. With the mining boom behind us, the top end market has returned to more normal levels. The revitalisation of the CBD and the expected influx of students when the University CBD campus is completed are real driving forces for change and property growth. The CBD is maturing into a great place to live. With more apartments being built in the coming years and hence more residents living in the city we can expect improved commercial business opportunities which should improve the city overall. Many people are just discovering Newcastle’s lifestyle and potential.
Rent Market
Over the last few months we have seen rents stabilizing and holding across all markets ranges. Vacancy rates have fallen. With well priced rental property leasing well. It is a difficult period to get ‘top of the range’ rents as we are not in the busy summer peak just yet.
Internet enquiry is strong from all web site with a third each from; our site walkom.com.au, realestate.com.au anddomain.com.au.
China
A review of what is happening in property markets in China is interesting as it goes someway to account for the larger number of Chinese buyers here in Australia.
In China, property prices have doubled in the past five years! This growth has become unsustainable. Hence the Chinese Government has introduced a few very strong measures to slow it down. Some measures include; higher interested rates for your second home and a ban on purchasing a third home. Generally the Chinese property market is cooling and prices are coming back due to these measures taking effect and an oversupply in apartments. This makes Australian property a good place for Chinese investors to park some investment funds. (Source New York Times May 13, 2014).