Login
iscover
Developing homes for specific demographics and a stamp duty review are among Douglas Driscoll’s 2020 predictions.
Last week, the Starr Partners boss revealed his prediction for continued growth in Sydney property values. He has now uncovered his thoughts on broader real estate issues.
In recent years, property developers have mastered the “one-size-fits-all” approach to keep up with the demand for apartment living. However, Mr Driscoll believes that mentality will change.
“With many more Millennials and downsizers entering the market, however, more developers have realised that they must adopt new configurations to suit the needs of a changing demographic. Downsizers, for example, are seeking terrace houses or single-story villas that offer low-maintenance lifestyles,” he said.
With the low interest rates, Mr Driscoll thinks Australians will embrace this and re-mortgage their homes in record numbers.
“With the lending environment becoming more competitive, and borrowers more open to smaller lenders, we’ll also see more mortgagees shopping around and switching lenders to secure a better rate. Even a quarter of a per cent saving on a mortgage rate can equate to thousands of dollars over the life cycle of a loan.”
Mr Driscoll also expects to see a higher number of exurbs around Sydney, and continued growth in existing ones.
When it comes to investments, he would not be surprised if landlords consider multiple-occupation houses. These are residential properties that have common areas and private living areas for tenants.
“It’s an emerging trend here in Australia. In areas of Sydney, particularly around its universities, more young people are choosing to live in such a manner, and I’m seeing landlords looking to adapt their properties for this purpose.”
With the continued political unrest in Hong Kong and Brexit in Britain, and the low Australian dollar, it creates prime conditions for British and Hong Kong residents to look towards Australia as a safe haven, he said.
Mr Driscoll’s final prediction for 2020 is the stamp duty will be reviewed.
“Stamp duty is a cash cow for the NSW government,” he said.
“In the 2016–17 financial year, it generated them a whopping $8 billion. However, as a result of the recent property market slump, the NSW Treasury has since suffered a fall in stamp duty revenue — revenue was $7.4 billion in 2018–19 and $6.9 billion in 2019–20.
“With property stock levels predicted to remain low next year, it’s in the interests of the state government to conduct a full review of its stamp duty model, and I predict these conversations will play a key role in state politics in 2020.”
Newsletter
