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Despite the doom-and-gloom rumours, this chief performance officer believes there are fine days ahead for the property market.
With over 30 years under his belt, Stone Real Estate’s Graeme Hyde is an old hand at the property game. In a recent episode of Real Estate Business’ Secrets of the Top 100 Agents, Mr Hyde shared his predictions on the future of Australian property.
Since the advent of the pandemic, commentators have been prophesying a downturn in the market, but Mr Hyde stated he “just can’t see times where we’re going to see it drop by 10 per cent or 15 per cent”.
“That just doesn’t make any sense in a supply-and-demand-driven economy like we have,” he stressed.
The Port Macquarie-based operator stated his belief that Australia’s cities are uniquely placed to draw in a steady stream of property hunters.
“We’re probably one of the most sought-after countries in the world,” he said. “Over the last 12 months, the population here has increased by some 600,000 to 700,000 people. Naturally, they’ve all got to have somewhere to live.”
According to Mr Hyde, this steady stream of newcomers is one major reason why the property market is set to stay strong. The other core factor he pointed to is the continued popularity of property investment.
He explained: “People hang onto investment properties longer because the returns are better than they would be in a bank or some other form of investment.”
Of all the capital cities, the executive is especially positive about the future of the Sydney market. According to Mr Hyde, the harbour city can expect sustainable growth because for most incomers to Australia, “Sydney tends to be that starting position”.
“I think that will continue to drive property prices forever in Sydney,” he said.
The perennial issue of interest rates is another reason behind Mr Hyde’s optimism. The volatility of interest rates in recent years means that as soon as they level, consumers will seize the chance of a reprieve, thinking “you know what, if things are going to stabilise we’ll jump into the market now,” the chief performance officer believes.
With supply at a low, the North Coast agent said: “The spring market is going to be quite exciting.” While more property may arrive onto the market, Mr Hyde doesn’t “think it’s going to be a glut, which means that property prices will continue to stay pretty firm”.
“There’s going to be a genuine shortage of property well into the foreseeable future,” the agent foretold. “It’s harder for property buyers trying to come in, but for agents, it’s fantastic.”
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