Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Prestige residential property to boom: McGrath

By Staff Reporter
01 September 2009 | 1 minute read

Residential real estate may be on the verge of the next big growth cycle, according to McGrath.

Advertisement
Advertisement

In the group’s real estate’s spring market review, chief executive John McGrath said despite the Reserve Bank of Australia indicating an interest rate rise of 2 per cent in the next 12 to 18 months, 2010 still looks set to be a strong growth year for property values.

“The likelihood of rate rises in the short term along with the upcoming expiry of the First Home Owners’ Boost will take some of the sting out of the sub $600,000 market but this should be balanced by an increase in investor interest and the growth of an economy looking to get back on its feet,” Mr McGrath said.

“We may see prices in this lower end plateau for the next nine months while we see this rebalancing of key drivers but I anticipate it to continue its growth, especially in the Inner City and Beachside areas mid way through next year.”

According to Mr McGrath the upper end of the property spectrum is set for the biggest rise – a forecast that was supported by RP Data reporting a 5.7 per cent gain in Australian prestige property values from January to June alone.

“Buyers in the prestige sector have re-consolidated their positions and are heading into Spring with money to spend in prestigious suburbs where prices have fallen 15 per cent or more,” Mr McGrath said.

Mr McGrath said the company was already seeing the results of a bumper spring season with auction clearance rates in and around Sydney averaging  70 per cent compared to 46 per cent this time last year.

“This is due to strong demand, limited stock, vendors realigning their price expectations with market values and quality versus quantity,” he said.

Prestige residential property to boom: McGrath
default
lawyersweekly logo

Feeling burnt out? The newest event to hit the industry, REInnovate, is a must-attend for serious real estate professionals facing the pressures of a heavy workload. Get ready to walk away with the undeniable structure for success, efficiency and profitability, and get yourself back on track to focus on what’s really important for your business. Get your early bird ticket now.

Tags:

Listen to other installment of the Real Estate Business Podcast

 

Do you have an industry update?

top suburbs

12 month growth
Queenton
69.76%
Flying Fish Point
69.61%
Point Piper
69.17%
Glenelg South
69.02%
Pretty Beach
69.01%
Bar Beach
68.9%
Northampton
68.7%
Kembla Grange
66.91%
Gnarabup
66.67%
Boomerang Beach
66.67%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.