Australian house prices will likely moderate further this year as rents fall and more housing stock comes onto the market.
Australian capital city house prices rose by just 0.2 per cent in the December quarter, official figures show.
In the year to December, the house price index was up 8.7 per cent, the Australian Bureau of Statistics said on Tuesday.
JP Morgan economist Tom Kennedy said the annual price growth was lower than the 10.7 per cent rise in 2014 and he expects prices to moderate further this year.
“Today’s print is consistent with the idea that some of the heat came out of the property market late last year, with the 4Q run rate the slowest since 2012,” he said.
Sydney house prices, while up 13.9 per cent over 2015, fell 1.6 per cent in the December quarter compared to the previous three months.
Mr Kennedy said that was due to a correction of the “frothy” growth over the year, which has continued in 2016.
“The monthly house price data indicates Sydney dwelling price growth has continued to cool in 1Q, a theme we expect to persist this year,” he added.
The best performing capital cities in the December quarter were Canberra, where house prices rose 2.8 per cent, and Hobart, which recorded a 2.5 per cent jump in prices.
CommSec chief economist Craig James said the moderation in price growth is a reflection of the rising supply of housing stock over the last two years, particularly cheaper apartments.
He said between 2011 and 2014 the ratio had been rising and rental costs were going up.
However, Mr James said the usual supply and demand equation was now coming into effect as more housing came onto the market and rents fell.
“Now there’s more homes out there so buyers have a lot more choice,” he told AAP.
“Prices are coming down to a sustainable rate and that’s likely to continue.”
CAPITAL CITY HOUSE PRICES IN 2015:
* Sydney – rose 13.9 per cent
* Melbourne – rose 9.6 per cent
* Brisbane – rose 4.2 per cent
* Adelaide – rose 3.3 per cent
* Hobart – rose 3.5 per cent
* Canberra – rose 6.0 per cent
* Perth – fell 2.9 per cent
* Darwin – fell 3.2 per cent
Source: Australian Bureau of Statistics
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Australia’s bank regulator APRA has found a significant tightening of home lending criteria since it began a crackdown in late 2014.
Tighter criteria mean that more marginal borrowers are increasingly likely to have their loan applications rejected, while those who do get finance will generally find they are offered a smaller maximum loan size.
A fresh survey into the treatment of four hypothetical borrowers shows that the average maximum amount that an owner-occupier could borrow fell by 6 per cent.
With APRA particularly concerned about the previously rapid growth in investor home loans, and introducing a speed limit on growth in that area, the maximum average loan to investors dropped 12 per cent.
“The hypothetical borrower exercise illustrated a material tightening of lending standards that we believe is appropriate and reflects more sensible risk assessment practices,” APRA’s general manager of industry analysis Heidi Richards told a conference on financial risk at Macquarie University on Friday.
APRA’s survey of 20 large banks, building societies and credit unions, conducted in September 2015, shows that just over half tightened their income testing for investor loans, with only one loosening its criteria.
Photo: The data show most banks and credit unions are improving their lending criteria (APRA)
The latest survey also shows that the majority of banks have raised their assumptions of how much households spend on living costs, thus reducing the amount of income left to service a loan.
However, half the institutions surveyed still set the level of expenses at those declared by the loan applicant, which Ms Richards said may not be conservative enough.
“Most people have a hard time actually estimating their own living expenses, so the customer-declared figure may not be particularly accurate,” she added.
Low deposit loans fall but interest only loans stay high
Another area where banks and other lenders have tightened-up is in applying interest rate floors and buffers to loan applications, meaning they test whether the borrower can withstand interest rate increases.
APRA’s 2014 hypothetical borrower exercise found such buffers wanting at many institutions, but last year’s survey showed all institutions at least complying with the minimum 7 per cent interest rate required by APRA.
Tighter lending criteria have seen total home loan growth slow from an annual rate of 7.5 per cent in November 2015 with an even sharper slowdown in investor lending growth from a peak of 11 per cent in May and June to 7.9 per cent in January.
Photo: Home loans have risen from less than a quarter to two-thirds of lending. (APRA)
However, the regulator is still keeping an eye on the historically high proportion of interest-only loans, and a recent rise in so-called non-conforming home loans.
“APRA data shows a recent uptick in loans approved outside serviceability; anecdotal evidence indicates much of this relates to loans in the pipeline that were pre-approved under older, looser criteria now being settled. So we expect to see this volume taper off,” Ms Richards noted.
No doubt APRA will continue watching this space closely, with home loans now making up two-thirds of bank loan portfolios, up from less than a quarter in the early 1990s.
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Half of Australia’s potential homebuyers are overestimating property prices in their capital city, according to a new survey by the Commonwealth Bank.
The survey revealed a tendency among homeowners to overvalue their properties, especially those who hailed from Sydney (57%), Brisbane (49%) and Adelaide (47%).
“Discussing the local property market is a national pastime but these results show that, even for those actively looking to buy a property, perception can be different to reality. Home buyers need to do their research so they can enter the market with confidence,” said CommBank’s executive GM of home buying Dan Huggins.
“Our research found more than half of respondents didn’t feel confident they could find current property market price estimates or what their potential repayments could be, which are important things to know when looking for a property.”
The research suggests more could be done to close the knowledge gap for homebuyers when it came to understanding their borrowing power, interest rates, mortgage repayments and stamp duty. Gen Y made up the least confident age group with only 29% describing themselves as “reasonably confident” in their knowledge of the Australian property market.
The research data coincides with the release of a new property app by CommBank.
“We know people use a variety of resources to inform their purchasing decisions such as websites, real estate agents and their friends and family,” said Huggins.
“Fortunately our app allows buyers to gain an estimated market value price, along with a clear snapshot of what their upfront costs might look like and their repayments.”
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There’s a new home you can buy for just $9400, if you’re willing to build it yourself.
Construction company 84 Lumber have a new range of tiny houses for those who want to break into the housing market without breaking the bank.
There are four models available in various stages of construction, with prices starting at $US6884 ($9400) for the DIY package.
The tiny houses are built on a steel trailer meaning they can be set up anywhere. Photo: 84 Lumber
At just four metres high and 14.3 square metres of floor space, the tiny houses use far less energy and resources than conventional houses and can be set up anywhere as they are built on a steel trailer.
The “Roving” model is the first to hit the market, and like the others it comes in DIY mode, semi DIY mode, or move-in ready.
The “Shonsie”, “Degsy” and a reported fourth style are currently still in prototype stage.
The designers believe that just because you’re in a tiny house doesn’t mean you can’t have a proper kitchen. Photo: 84 Lumber
Roving’s sophisticated move-in ready option comes fully furnished with a composting toilet, cork flooring, Energy Star-certified appliances, and LED lighting, while the DIY Package simply includes architectural blueprints, a materials list, and a trailer.
Beyond the miniature porch is the slim front door to the slim living room/ kitchen, that sits below the loft “bedroom”.
There’s also a separate bathroom with a barn-style sliding door.
The loft bedroom. Not recommended for the extremely tall. Photo: 84 Lumber
The designers believe that just because you’re in a tiny house doesn’t mean you can’t have a proper kitchen and they’ve kitted it out with walnut butcher block tops, a stainless steel sink, an electric cook-top, designer taps and a built-in kitchen table.
The tiny houses will be available in 84 Lumber’s 200 stores across America, a sign that the movement may be more than just a fad and instead an attractive solution to rising house prices.
Manufacturing the non-DIY packages is a custom process that takes approximately 8-10 weeks.
The company have not announced whether they will be shipping the tiny houses internationally, however they do send other pre-fabricated homes to Australia.
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If you haven’t already jumped on the renting bandwagon, and you have untapped space in your property, it could be time to rethink the utilisation and configuration of your home. With around seven million space rooms sitting idle across the nation, there is approximately $1.42 billion worth of dormant real estate– and Australians are missing out big time.
Our finder.com.au study found that 85% of owner-occupied houses and 60% of rental properties have spare bedrooms, and most homeowners are missing out on a potential $10,000 annual boost to their household income by not renting out a spare room, (not to mention the interest savings that could result if the cash was reinstated in the form of extra mortgage repayments.)
On an average $450,000 home loan with 5.5% interest over an initial term of 30 years, you could save $150,856 in interest over the life of the loan by using your rental income as additional repayments.
Whether you had a vision for a designated guest room, a future home office, or you simply needed a backup space when relatives come to stay, it’s worth converting your untapped space into an income-producing area now, and worrying about the rest later.
Advertise your unused space and attract high quality tenants to minimise your interest repayments, shrink your loan term, and free yourself from debt sooner.
What are the cost savings?
Renting out a spare bedroom in your home could generate significant cost savings in the form of lower interest repayments and a shorter loan term, but unfortunately many Australians are not taking advantage of underutilised space.
Our study found that householders are wasting valuable space and forgoing huge savings. The average cost of renting a room in 2015 was $202.06 which means that homeowners could be earning $808.24 in monthly rental income if they were proactive about using their spare bedroom.
To illustrate, if you had a home loan of $450,000 at 5.5% interest over 30 years and you made additional monthly repayments of $808 at year 5, you would save a tremendous $150,865 in interest.
You would also shrink your loan term by 9 years and 9 months, leaving you with an updated term of 20 years and 3 months. That’s nearly 10 mortgage-free years.
What about subleasing a spare room?
You could benefit from subleasing a spare room in your property, however if you are renting privately you must seek your landlord’s written consent. Keep in mind, that if you do sublet a room you are responsible for the subtenant’s behaviour–so choose wisely.
What are the tax implications?
Before renting out a spare bedroom, it’s worth speaking to your accountant about the tax implications. If you rent out a space, a portion of your home is considered as an investment property by the Australian Taxation Office (ATO) which means you’re required to declare the rental income in your annual tax return.
However, you can claim deductions for certain expenses, such as maintenance, but these deductions can only be claimed for the portion of your expenses that are directly related to the rental income. You can work this out by calculating the floor space area that is occupied by the tenant.
Typically, you won’t be eligible for a full capital gains tax (CGT) exemption as you’ve used part of your home to produce income and the property may not pass the primary residence test.
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Home prices will cool down in 2016 after double-digit rises in some capital cities for the past two years, a new report by CoreLogic and Moody’s Analytics predicts.
But the forecasters said a rapid rise in unemployment in Australia and a hard landing in China could lower their predictions and hit prices.
The forecasters have released a new home value index which predicts home prices every quarter for the next 10 years.
Moody’s Analytics chief international economist Ruth Stroppiana said weak growth in wages and more homes being built would keep a lid on home prices this year.
But she expected the slowdown in prices would be a “healthy correction” and not a price crash.
Ms Stroppiana said a big fall in house prices was only possible if there was an economic shock such as a global recession, a large rise in unemployment in Australia or a sharp slowdown in the Chinese economy.
Moody’s Analytics economist Alaistair Chan said possible changes to negative gearing could also impact home prices.
The report said home prices rose 9.1 per cent nationally in 2015, but the pace of price rises is expected to drop sharply in 2016 to 3.6 per cent with prices forecast to rise 2.7 per cent in 2017.
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Contrarian economist Jonathan Tepper this week re-ignited an age-old debate about whether we are in a property bubble, after raising the alarm bell about Australian house prices.
He pointed to data including a surge in household debt, a boom in interest-only lending, and much higher house price to income ratios, and predicted a plunge of up to 50 per cent in Sydney and Melbourne property prices.
The economic trends he identified are all true. They have been repeatedly highlighted by bodies such as the Reserve Bank, the Australian Prudential Regulation Authority, and the International Monetary Fund.
Alarming as his claims are, however, it is worth setting them against some other economic trends, which analysts say should dampen some of the fears about the property market.
Average home loan payments look manageable
Westpac senior economist Matthew Hassan points out that as a proportion of household income, the cost of paying off a typical mortgage for an existing home owner or someone looking to buy is well below previous peaks.
“Both figures highlight that the burden is not really high, but there’s a sensitivity around future interest rates,” Hassan says.
Mortgage ‘buffers’ keep growing
Households with home loans are, on average, paying off their home loans ahead of schedule.
No one disputes household debt is high in Australia, but this graphic shows that many borrowers have a “buffer” that could help protect them if they were, for example, to lose their job.
The total value of these buffers is equal to 16 per cent of all loan balances, or more than two years of scheduled loan repayments.
Credit growth is not extreme
Economists say a tell-tale sign of a bubble brewing is is rapid credit growth.
Housing credit has picked up, without doubt, but it is still a long way from previous highs.
Mortgage arrears are low
If there is a housing crisis coming, the banks have not yet seen a lot of evidence of borrowers falling behind on their home loans.
This chart from Standard and Poor’s shows the percentage of borrowers in arrears is lower than a few years ago.
Of course, that would probably change if interest rates or unemployment rose sharply.
‘Low-doc’ lending has fallen
A key reason for the meltdown in the United States housing market that precipitated the global financial crisis was rapid growth in lending to risky borrowers.
While the banks’ lending standards have been criticised, the value of low-documentation (“low-doc”) mortgage lending in Australia has been falling for several years.
Sydney’s market has been playing catch-up
Sydney prices are up a whopping 75 per cent since 2009.
But growth in the city’s house prices was much softer than other cities for much of the 2000s.
That game of catch-up is reflected in this graph, which shows the ratio of Sydney homes to those in other cities was below-average for much of the decade.
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Another year, another doomsday theory for the housing market. And likely with it, a stack of book sales.
It has practically become an annual sport for Australia’s economists to swat away the latest predictions of researchers and think tanks who are waiting for the rug to be pulled out from under the property market.
“There have been numerous calls of a looming crash in Australian property over the last decade or so, but they have proved to be well off the mark,” said AMP Capital chief economist Shane Oliver.
“Lately it seems to me that some people have just seen The Big Short and want to be film stars.”
This week it was London-based macroeconomic researcher Jonathan Tepper whose claims made headlines, with six graphs he claims show the housing bubble is out of control in Australia.
“It is very difficult for a foreigner to understand just how crazy the Australian housing bubble is,” he wrote, in a report to clients.
Tepper joins a ever-growing conga line of doomsday theorists to predict a housing market crash. History suggests he won’t be the last. Here’s a reminder of the boldest predictions in recent years.
Jonathan Tepper
Who: Macroeconomic researcher
Prediction:In February 2016, predicted a 50 per cent drop in house prices.
Much of Tepper’s claims are based on the Australian banking system irresponsibly loaning large sums to those who can ill afford them.
In his bookThe End Game, co-written with John Maudlin in 2011, he called Australia a “house of cards” in a chapter questioning whether the lucky country could follow in Ireland’s footsteps.
“We are confident the bubble will burst and that it will be spectacular, but we do not know what will provide the spark,” he said.
They pointed to a slowdown in China, a strong Australian dollar affecting exports, quantitative easing in G10 countries and resulting increases in interest rate rises by the Reserve Bank of Australia.
“Australia was one of the few countries in the world where house prices made new highs following the Great Financial Crisis, and its housing market is in nosebleed territory,” they claim.
On Monday Australian economists were quick to argue against Mr Tepper’s most recent bubble assertions. Tepper replied on Twitter.
To all my new Australian critics. The Irish, Americans, Spanish, Latvians were stupid. Aussies are special. You won’t have a housing bust
Prediction:In 2014, Mr David predicted a “bloodbath” in the housing market in the future.
After a decade in the US, David returned to Australia with warnings the country is in one of the worst housing bubbles the world has ever seen, warning of an impending bloodbath.
His claim is that if new home buyers cannot access or will not take on a greater debt compared to previous buyers, “Australia’s wealth-creation strategy will collapse just like it did in Ireland.”
He expects “severe economic and social catastrophe” as the housing bubble and mining boom go down “simultaneously” and is in agreement with Tepper’s predictions.
Harry Dent
Who:Economist
Prediction:In 2014, he forecast a fall in house prices of at least 27 per cent in Sydney and Melbourne “over the next several years”.
American financial writer Harry Dent expected the collapse of Australia’s house price bubble to be triggered by the bursting of the Chinese house bubble.
In 2014, while promoting his bookThe Demographic Cliff, he said Melbourne and Sydney’s property markets were being held up by foreign buyers.
“Nobody in real estate development or government can afford to say that ‘we have got a bubble’,” he said at the time.
If his forecasts do not come true it will be because governments “wave the magic wand and kick the can down the road again”.
Steve Keen
Who:Academic and economist
Prediction:In 2008, he said house prices would drop by 40 per cent within a few years.
Australian-born British-based Mr Keen was formerly an associate professor of economics at Western Sydney University until 2013. In 2014, he became a professor and head of the school of economics, history and politics at London’s Kingston University.
Keen famously undertook a 224-kilometre walk from Canberra’s Parliament House to the Snowy Mountains’ Mount Kosciuszko in 2010 after losing a wager with Macquarie Bank analyst Rory Robertson that home prices would fall 40 per cent from peak to trough in a year.
He wore a T-shirt saying: “I was hopelessly wrong on house prices. Ask me how.”
In 2009, Robertson said that if Australian house prices ever fell by 40 per cent from any peak in his lifetime, he would undertake the same walk.
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Congratulations! You’ve decided to embark on that formidable journey towards the bedrock of the Australian Dream: home ownership and the associated ball-and-chain of a mortgage.
You’ve set up your weekly budget, got the real estate jargon down pat and you’ve even braved the move back home to scrimp some more dollars from your pay packet.
And yet the newbie house hunter’s excitement wanes ever so quickly. If you’ve set your eyes upon a piece of the property market in the past few years with its skyrocketing prices and growing gentrification, chances are you will have dealt with the five stages of downgrading your property purchasing dreams.
Denial
Scrawling through the online property listings for the umpteenth time, you once again struggle to drag your slack jaw off the floor. They’re askinghow muchfor that grungy two-bedroom unit with a concrete garden? Tell him he’s dreaming!
Attending auctions has triggered the cognisance of your limited buying power: bids increase at an alarming pace and you realise if you had been bidding you would have been long out of the game.
You scour the papers and all the media reports are of unprecedented growth; that it’s a seller’s market; that first home buyers are being locked out of the market.
You begin to panic. This can’t be right. This sort of growth is just unsustainable! This can’t go on forever. The bubble has to burst, right?
Anger
The bubble doesn’t burst.
And so comes the anger. And no one is safe.
There’s the anger at the investors who are having their cake and eating it too. Being pushed out of the market while they line their pockets and reap the rewards of negative gearing and a 50 per cent capital gains discount they enjoy when they eventually sell these properties is just not sitting well with you.
There’s the anger at the creeping gentrification which now leaves you unable to afford purchasing in the working class suburb you grew up in. Suddenly you’re competing with families for a patch of turf.
And you’re angry at anyone accusing you of a Gen Y sense of entitlement and unwillingness to make sacrifices. Oh no, you shouldn’t gripe at the fact that houses on average now cost 12 times the annual income or that the average first-time buyer could now take up to nine years to save up their deposit!
Bargaining
Gratifying as it is to vent about your property buying woes, it isn’t getting you anywhere. You begin lowering your expectations.
Maybe everyone’s right. Maybe you have been too picky. You just need to get a foot in the door, after all.
Who needs space? Sixty square metres will do. A house was probably too big for you, anyway.
Forget about the luxury of a small yard. A couple of pot plants on the windowsill should suffice.
Who needs an actual lounge room? You’re fine with a dining/living/hallway/bedroom …
Yep, you clearly had been too picky.
Depression
Settling for something that vaguely fits your budget means being shackled for life in exchange for an inflated s–thole. The thought of paying off a hideously large loan to finally own a shoebox is depressing. Are people just selling their financial futures for a piece of anything? Are they living off two minute noodles and crackers even as they enter their 30s, 40s ..?
And so, you disappear at the hint of a discussion about the property market around the work water cooler. The knot of dread gnaws when a well-intentioned friend asks you that question, “So how’s the house hunt going?” There is no longer solace in bitching and moaning with other disgruntled house hunters; just reminders of what you so sorely do not have.
Let’s face it. You’re going to be a permanent resident in your parent’s house. You’re never going to own your own home.
Acceptance
Well enough of the self-indulgent pity party!
You pull yourself up, ready to face the reality and the glaring unaffordability of it all threatens to send you back to denial. But you know better than that now. This is the reality of the property market. And the reality sucks – it’s unfair, it’s ugly, it’s expensive. You don’t like it, but you have to deal with it.
The ever increasing prices meant you were saving for an ever increasing house deposit. All the scrimping and scrounging and cutting things out of your life had also cut out the joy of life. But planning for your future didn’t also have to mean a cheerless present.
You’ve been to a few inspections and they had some potential. Perhaps you had been too hasty to write off this whole being-an-adult-and-buying-my-own-place venture. You’ll keep saving. And you’ll get there… eventually.
Plus, they say the bubble’s going to burst this year.
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PROPERTY price growth is predicted to slow down in 2016, but valuers Herron Todd White have revealed in their latest Month in Review that there are some pockets that may continue to perform well this year.
SYDNEY
“We are predicting the residential property market in Sydney in 2016 to be a sharp contrast to the strong growth realised over the past few years,’’ it said.
“A modest market correction is predicted to stabilise at the beginning of the year with values eventually levelling out and remaining flat throughout the remainder of the year.’’
“There however a few pockets of Sydney that we are predicting may continue to perform well in 2016, although of course not at the levels seen over recent years.’’
These include parts of the Rockdale Council area such as Sans Souci, Brighton-Le-Sands and Montereywhich were areas for possible continued growth with units still relativity affordable in comparison with neighbouring areas.
Nearby suburbs ofCarlton and Allawahwere also considered to have some potential.
In theEastern Suburbsareas such as Centennial Park, Kensington, Randwick and Kingsfordwere expected to remain in demand despite decreased investor activity throughout Sydney. In the
Inner Westopportunities could exist in the proposed Sydenham to Bankstown Urban Renewal Corridor.
A cottage at 86 Eleanor St, Footscray will be auctioned on February 27, it has a price guide of $630,000 to $670,000. Picture: realestate.com.au
MELBOURNE
There are a few key suburbs which may experience higher than average growth in 2016, according to the report.
Inner west, Footscray already experienced a rapid growth rate during 2015 and given its closeness to the CBD, improved infrastructure and rich multicultural environment, it has “all the characteristics to be a distinguished performer in 2016’’.
Other suburbs tipped for potential growth in the west includeSunshine, Braybrook and Laverton.
Bayside suburbs such asHampton and Beaumariswere listed as likely to continue to see strong growth in 2016, although potentially less than in 2015.
The report saidFrankstonhad long been set as the next suburb to experience rapid growth and this year could be its time to shine.
“We believe that 2016 will be one of average growth throughout Melbourne, with the levels of capital appreciation being significantly lower in comparison to 2015.’’
A four-bedroom home in Morningside is listed for $835,000. Picture: realestate.com.au
BRISBANE
The report said after the “somewhat deflating results in 2015”, most would like to think the coming 12 months “will be a cracker’’ for Brisbane.
But “all signs are, in a general sense, Brisbane property owners can expect an unexciting 2016’’.
“There are near city localities well worth consideration – Morningside, Murarrie and Carinahave potential for growth as the East Village project comes to completion.’’ it said.
“Another tip is to stay within established, owner occupier areas and look for affordable detached homes that could do with a lick of paint,’’ it said.
A three-bedroom home at Albert St, Clarence Gardens is listed for auction on February 6 with a price guide of $600,000. Picture: realestate.com.au
ADELAIDE
The report said the residential market in South Australia remained stable with little growth.
Suburbs worth watching this year included: Clarence Gardens which is close to the city and has good amenity and character-style dwellings.
Others wereModbury,Dernancourt andClearviewwhich were undergoing infill development.
Payneham South,RichmondandDevon Parkalso had potential.
You get a lot of house for your money in Tasmania. This three-bedroom home at Glenorchy is listed for offers over $465,000. Picture: realestate.com.au
TASMANIA
The report said Tasmania’s growth had been restrained by sluggish population growth and export challenges.
Suburbs with growth potential included Glenorchy andKingston.
The most popular area for buyers wanting to spend more than $450,000 according to the report wasSandy BaywhileGeorge Townchalked up the most sales below $220,000.
A four-bedroom house in Withnall Circuit, Muirhead is listed for $745,000. Picture: realestate.com.au
DARWIN
“The year ahead for (Northern Territory) property is unfortunately not full of rainbows and lollipops,’’ the report said.
“A large concern to the market through 2015 was the significant drop in sales volumes (29 per cent for houses in Darwin and Palmerston and 62 per cent for units and townhouses in the same areas).
“Cranes still hovering in the CBD and the residential subdivisions of Muirhead in the north andZuccolito the south will continue to generate the majority of residential construction through 2016.
The activity hubs of Casuarina Shopping Centre, Gateway Shopping Centre in Palmerston and the Coolalinga Shopping Centre will continue to grow through 2016.
A unit in Tantini Close, Parkwood is listed for offers from $549,000. Picture: realestate.com.au
PERTH
“We would anticipate that 2016 is likely to end in a similar fashion to how it has commenced – with caution throughout most of the market, periods of opportunistic upgrade activity and a continuation of price correction in oversupplied sectors,’’ it said.
“Overall, we consider the market in 2016 will be a good opportunity for discretionary buyers, with an increase in upgrade activity persisting throughout the year. We would expect this to be concentrated along the coastal strip and established suburbs withinten kilometres of the Perth CBD’’
The report said the focus would change to older, established areas which comparatively, appeared to represent good buying including Parkwood , St James, Koondoola and Morley.
https://originfinance.com.au/origin/wp-content/uploads/2014/12/origin-finance-logo.jpg00ofadminhttps://originfinance.com.au/origin/wp-content/uploads/2014/12/origin-finance-logo.jpgofadmin2016-02-26 07:57:372016-02-26 07:58:22The Suburbs to Watch this Year
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