Bitcoin, renos and regional growth ahead, says LJ Hooker

Bitcoin, renos and regional growth ahead, says LJ Hooker

Bitcoin, renos and regional growth ahead, says LJ Hooker
by Tim Neary 1 comments

Home sellers will further tempt buyers with cryptocurrency sales in 2018 while hefty stamp duties will spur many to renovate instead of move, LJ Hooker has predicted.

The network has said that as the digital currency’s popularity increases, vendors will increasingly be open to bitcoin offers from buyers.

To this end, it has listed numerous properties with a bitcoin connection, including a four-bedroom home in far-north Queensland. The property is listed for sale for $1 million, but the price will reduce by 10 per cent if purchased with bitcoin.

LJ Hooker also says that surges in values in the major markets of Sydney and Melbourne have had a significant bearing on stamp duties.

In Sydney, purchasers face around $44,000 in stamp duty for a median-priced house and $30,000 for a median-priced unit; the prices are around $47,000 and $31,000 in Melbourne.

Head of research at LJ Hooker Mathew Tiller called the value surges “phenomenal”. 

He said that the average house price growth over the past five years in Sydney is 71 per cent; in Melbourne, it’s 59 per cent.

“In Sydney and Melbourne, some suburbs have seen the median sale price grow by more than 100 per cent over the past five years, which has enabled owners to build up exceptional levels of equity,” the head researcher said.

“We anticipate there to be a lot of sellers wanting to capitalise on their improved personal wealth in the new year, but there will be some sellers who wonder whether the stamp duty on their next purchase is worth it.”

But Mr Tiller said that many might consider it more fruitful to upgrade their existing home, which would have serious knock-on implications for local government revenue.

“When owners stay put, it places pressure on property prices and impacts the bottom lines of state governments who rely on stamp duties for infrastructure and administrative tasks.

“Governments need to review the excessive nature of these charges.”

Mr Tiller also said that the network anticipates regional growth to outpace capital cities growth in 2018.

“The comparative affordability of regional centres makes them more attractive for those looking to downsize, or for those that want to upsize to a large family house without taking on a large mortgage,” the head researcher said. 

“In addition, the lower cost of housing in regional centres, less supply of new housing and steady population combine to make rental yields higher than in capital cities, which in turn attract investors.”

LJ Hooker also expects to see a drop in investor activity in the year ahead.

“Listings will rise as owners look to capitalise on the price growth of the last five years,” Mr Tiller said.

“However, with regulatory authorities and banks placing limitations on investor activity, there will be less investors in the market, leaving listings at elevated levels.”

Bitcoin, renos and regional growth ahead, says LJ Hooker
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How much of an influence will bitcoin and other blockchain cryptocurrencies have on the home sale market in 2018?

None, Bit-what?
A little, cryptocurrency is a fad and will fade quickly
A lot, blockchain is the new black
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