Upon attending the select extended Real Estate & Mortgage Brokers financial year briefing there was plenty to be learnt about today's market, trends and the right positioning for property investors. Some factors will have considerable impact on how investors need to prepare in the property market and it's best to know this information before stepping forward or planning your next move.
The impact from the APRA lending changes on banks has now been full passed on through the lenders and the numbers have surprised everyone:
- The numbers of Foreign Investors have reduced massively with APRA & Federal Government both tightening & is now almost non-existent.
- Forecast property investor loan growth of 10% has not even looked close to happening. The current growth figure is 2%, meaning the tightening of the funds has had a bigger impact than APRA had actually intended it to have.
- Development Approvals are steady although projects actually commencing with satisfying the banks on pre-sales numbers has fallen considerably. Tighter lending again the reason.
- The slowdown in developments has seen an overall fall in numbers of available properties from the new construction sector.
- Migration numbers have eased off in Sydney & Melbourne but has increased dramatically in Brisbane & South East QLD.
The key market trends and current status of property markets that may also surprise
- In the Sydney & Melbourne rental yields have fallen in the last 2 years due to capital growth & to a lesser extent in Brisbane, Adelaide, Canberra, Perth & Hobart
- The highest rental yields of the major Cities is Brisbane. This is more interesting due to the Migration numbers starting to really spike into the Brisbane & South East Qld regions.
- Some regional areas have seen higher capital & rental growth than capital cities. Contact us for a detailed list & discussion on these.
- Forecast is a slow down in the numbers of properties being built which is expected to see a take up during the next 2 years so rents commence increasing strongly as prior to the boom. This is then expected to push property prices back into stronger growth.
- In the next 18 months to 2 years some parts of Sydney & Melbourne will see a small decline in housing prices. The other capital cities are not expected to follow the same suit as the top two. In Brisbane this is due to strong demand for rental & owner-occupied property. Perth is starting to increase in values of property in numerous areas with relatively strong rental yields. Adelaide, Canberra & Hobart have seen recent increases in growth but not expecting these 3 to sustain the growth levels as much as Brisbane & Perth.
For a more personalised information please email Info@BuyBuildInvest.com.au Or call 1300 123 468