Property this week; expats, going coastal and apartments
Who else is sick of all these doomsday posts? We've probably mentioned it before, but it's just so cringeworthy to see the same click-bait titles every week. We know that the market is not great. Just in case you needed a reminder though, here's one from The Australian (paywalled): Property market 'cooling'
Despite that, there are still some good above reserve results occurring around the country. Here is one from Sydney this week.
We know that without a doubt there is some kind of effect on the market due to the Banking Royal Commission. But we'd like to see a bit more complex analysis, especially on apartments.
There were some interesting insights for the week though, from Robert Gottliebsen, who is one of Australia's most respected business journalists. He states that a possible apartment bust is imminent, and even the big developers such as Meriton have stopped buying land. You can read this over on MacroBusiness (you might need to sign up) who add that the very causes of this bust, despite some short-term pain, will lead to a more stable market in the longer term (the causes being related to the APRA restrictions and Banking Royal Commission).
We'll be looking at what all this really means over the next couple of weeks.
It seems though, in the midst of all this, a new group of potential buyers have emerged - Aussies living abroad with intentions of soon returning. Read more on AFR. Expats are just one segment who are contributing to Australia's population growth (this growth is helping to ensure apartment prices do not take a total tumble). Read more here. Despite fears of apartment oversupply, there is still some demand for property.
Regional markets are continuing to remain popular, especially around the coastal towns north and south of Sydney.
Have a great week everyone!