Brisbane property market to shine in 2016
SBS News reported on 20th January that Brisbane’s residential property market is expected to shine in 2016, while Perth is approaching the bottom of the cycle, property developer Cedar Woods says. Chief executive Paul Sadlier said Brisbane’s new housing and established residential property market had been undersupplied for a while. “It’s probably got the best residential housing outlook of the states at the moment,” Mr Sadlier said. He expects Cedar Wood’s inner developments in Brisbane to trade well even if the economic climate deteriorates.
Meanwhile, Perth home prices were down around three to four per cent in 2015 and would stay fairly flat throughout 2016, he said. “I think we’re getting towards the bottom,” Mr Sadlier said.
The resources dependent state of Western Australia was now three years off its peak as the mining downturn continued. But Mr Sadlier said the city was making a transition from mining to health, education and agriculture. “This year should be fairly steady for WA in terms of both volume and price,” he said.
While Sydney’s market continued to cool, thanks to tighter rules for investors, there was still strong demand in terms of volumes. Melbourne had been the steadiest market of all of the major capital cities, but Mr Sadlier expects the city’s recent strong price growth to ease in 2016. “In volume terms they’re capturing more than their fair share of immigration and being a price point below Sydney they will continue to capture that market,” he said.
Adelaide’s population growth was not as strong as the other capitals but the city was undergoing an inner city transformation. Mr Sadlier added that owner occupiers were now pushing aside investors and first home buyers as the strongest buying group in the nation. He also expects Chinese developers to continue focusing on Sydney and Melbourne unless the Chinese leadership tightens rules on capital movement.
Cedar Woods has projects in Victoria, Western Australia, South Australia and Queensland.
Acknowledgement: This article was reported in SBS News on 20th January, 2015.