What’s in store for the property market in 2016? We take a look at a few shifts that might be occurring, and that could shape your plans to purchase.
If you’re in the market to buy into a new property development or perhaps build your own home, you’ll want to keep a clear eye on the future. When you understand what the up and coming trends in the property market are, you can form a clearer picture of what you want to build or buy.
With this in mind, here are three things likely to occur in the property market over the coming year.
A shift towards buyers markets
Sellers markets have been rife across Australia recently, particularly on the east coast where price rises have locked many buyers out of inner city markets. However, the latest Commonwealth Bank Home Buyers’ Index (HBI) shows a few shifts in the landscape.
For example – the November 2015 release of the HBI showed that both Brisbane and Darwin had shifted in favour of buyers, while Adelaide had moved towards vendors. The shifts in supply and demand influence this, and highlight where conditions are better for purchasing and investing.
Sydney and Melbourne, however, remain extremely slanted in favour of sellers. Most of the best buyers’ markets are in regional areas, but the cities still have pockets where supply, demand and interest rates all work in the buyers’ interest.
A strong supply of new dwellings
Last year was a bumper year for Australian home building, particularly when it came to apartments. The Housing Industry Association and Australian Industry Group’s index on construction levels showed that apartment developments were significantly more abundant than other forms of dwellings, while residential homes were also performing positively.
This is likely to mean a strong pipeline of supply in 2016.
A spread in value growth
Sydney and Melbourne have dominated value growth headlines in the last couple of years, but 2016 should see this spread a little further out. For example, BIS Shrapnel’s Residential Property Prospects report has indicated that areas like Brisbane, the Gold Coast, Wollongong and Newcastle are likely to see tremendous growth in the next few years.
Meanwhile, Sydney and Melbourne should slow down to a more reasonable rate of growth than the near 15 per cent levels seen throughout 2015.
Of course, this is just a brief prediction of what we should see in the 2016 property market. Buying or investing takes a lot more work than this. By logging in to Unlock Property you can read reviews by consumers about apartment developers and home builders to assist you in making decisions when seeking to purchase.