The current focus on Sydney and Melbourne real estate markets is doing the property market a disservice, according to RE/MAX Australia managing director Michael Davoren.
“Major media stories, especially in the national media, focus on Sydney and Melbourne, where there’s bound to be turbulence in markets that are coming off eye-watering highs,” Mr Davoren said.
“The reality is that Sydney’s property market peaked in mid-2017 and Melbourne in about November that year. Sydney home prices have come down around between 5.5 and and 6 per cent over the last year, and the best you can say about Melbourne is that it’s experiencing a soft landing after five years of strong price growth.”
Mr Davoren said that much in the media was the talk of forecasters, but forecasters can get it wrong, sometimes “a bit” and other times “spectacularly”.
“Unfortunately, the media can give these predictions credibility, and we have been subjected to their ‘advice’ time and time again.”
He said that the Sydney and Melbourne bias is problematic.
“It is of grave concern that property investors are not receiving the full or accurate picture, and that people are missing potential investment opportunity in other markets, including interstate, and especially South East Queensland,” Mr Davoren said, adding that Queensland is leading the nation for interstate migration.
He said that, according to ABS stats, 24,000 people moved interstate to Queensland so far for the year to March.
“Queensland is through the worst of its mining construction downturn; gas exports are performing strongly and tourists continue to flock to the state.
“Job growth is quite strong, with nearly 130,000 net new jobs created in the past year alone, partly due to almost $30 billion worth of projects under construction.”
Mr Davoren said that the number of overseas migrants has also risen.
“And it is not only the number of incomers that is significant; the fact is that cashed-up people coming out of the southern markets are looking for somewhere to invest.”
Mr Davoren sees Brisbane property having good growth potential after the past few years of slow growth.
“Historically, Brisbane price growth has been high when interstate migration into Queensland has been high, though this hasn’t been seen since pre-2015. Brisbane may prove to have the greatest potential over the next three or four years, and housing is still relatively affordable.”