Major property markets across Australia returned to normal conditions in 2018 because of tighter bank lending to investors and restrictions on foreign investors, according to renowned network Raine & Horne.
Executive chairman Angus Raine said that, concurrently, a combination of real estate affordability, lower interest rates and infrastructure spending has enabled several capital city markets to enjoy steady market conditions in 2018.
New South Wales
He said that a surge in appraisal numbers in late spring is a “strong” indication that more NSW owners have identified opportunities to make a move in the current market conditions.
“Some of our NSW offices are fielding more appraisal requests from upgraders and downsizers who have realised that buying and selling in the same market conditions won’t hurt their financial nest eggs. In fact, they may pay less terms of government taxes.
“Across NSW, requests for appraisals are significantly higher in some markets than the end of 2017.”
Raine & Horne Concord recorded an increase in appraisals of more than 40 per cent in November 2018 compared to the previous year.
Away from the city, Raine & Horne Wagga Wagga is reporting appraisals have more than doubled, while appraisals have increased by almost 25 per cent for Raine & Horne Tamworth.
In 2018, the Brisbane market produced modest growth, yet the state’s strong interstate migration will continue to underpin real estate values, Steve Worrad, the network’s general manager in Queensland, said.
“This year, Brisbane was a modest but positive performer with capital growth of just 0.3 [of a percentage point]; however, industry research revealed that there were almost 70 suburbs in Queensland that delivered double-digit growth,” Mr Worrad said.
“This is an outstanding result and indicates there are still many real estate pockets across Queensland producing strong results for investors and owner-occupiers.”
With only weeks left until the end of 2018, general manager for Raine & Horne in SA James Trimble said that the markets there are still active.
“We have offices across South Australia running open houses on Saturday and Sunday right up to Christmas,” Mr Trimble said.
“This puts to bed any notion that South Australian real estate is a sleepy market. The spring market has extended into December because we have a dearth of stock in prime Adelaide markets and buyers are desperate to find a property before Christmas.”
Like neighbour South Australia, it’s been steady as she goes for real estate markets in Western Australia, according to Craig Abbott, general manager for Raine & Horne in WA.
“That said, there is a growing demand for properties priced between $800,000 and $1 million in suburbs such as Claremont,” Mr Abbott said.
“The western suburbs of Perth also standout as hotspots. Anything above $800,000 offers good value in the western suburbs, and most buyers are white-collar workers.”
The Darwin real estate market was given a shot in the arm in December with the announcement by Canadian-based Wayland Group that it is planning to grow medicinal marijuana in the Northern Territory.
Glenn Grantham, general manager at Raine & Horne Darwin, said that the anticipated manufacturing plant will inject money and jobs into the Darwin economy.
This initiative follows hot on the heels of the November announcement by the Northern Territory government, the Australian government and the City of Darwin that they will invest a combined $200 million into the city to turbocharge the local economy and cement Darwin’s position as a liveable tropical capital city.