Best property opportunities ahead for 2019: what the experts tell us

Are you planning to buy an investment property in 2019? Or maybe you’re planning to buy a new home? With Sydney and Melbourne house prices continuing their decline, where should investors be looking to get a good deal in 2019?

Where next
for investors: reading the market

In partnership with BIS Shrapnel, QBE released the Australian Housing Outlook 2018-21. The analysis presents an outlook for the performance of the residential market, measured by historical and forecast movement in the median house price and median unit price. Let’s take a look at their outlook for some of the more encouraging regional centres across Australia.

POSITIVE OUTLOOK

Newcastle

• Newcastle’s
  role as a logistics hub looks set to continue, which together with improving
  employment growth, is likely to bolster economic activity in the region and
  improve market sentiment.
• A
  number of major non-residential and infrastructure projects will continue to
  drive employment growth and migration inflows.
• Newcastle’s
  median house price is expected to grow a cumulative 7% to $635,000 in the three
  years to June 2021, with potential for further upside if migration from Sydney
  increases at a greater rate.

Hobart

• A
  relatively strong rental market, alongside the recovery in the Tasmanian
  economy and continued population growth, point to continuing house price growth
  in the short term.
• By
  June 2021, Hobart’s median house price is expected to reach $520,000, almost 8%
  higher than current levels.

Ballarat

• The
  outlook for Ballarat remains positive with continued benefit from relatively
  strong non-residential building construction expected over the short term.
• Median
  house prices are forecast to rise a cumulative 6.9% to reach $385,000 at June
  2021.

Geelong

• In
  the short term, construction activity in Geelong will be strong, benefiting
  from a high level of new dwelling and infrastructure activity.
• It’s
  likely that first home buyers will continue taking advantage of the stamp duty
  concessions that were a driver of demand in 2017/18.
• Stronger
  price growth over the forecast horizon will be limited by the recent strong
  price growth in Geelong and competition from Melbourne’s outer western suburbs.
• Geelong’s
  median house price is forecast to grow 2.6% in 2018/19 before flattening out
  over the following two years. By 2020/21, the median price is expected to reach
  $550,000.

Sunshine Coast

• A
  thriving tourism industry, and a number of large infrastructure projects, will
  maintain activity in the building sector and help to drive migration and
  population growth.
• Price
  growth is set to continue in 2018/19, but then steadily slow due to a rising
  supply pipeline.
• The
  median house price is expected to reach $650,000 by June 2021, representing a
  cumulative rise of 9% over the next three years.

Canberra

• Economic
  growth in the Australian Capital Territory is projected to begin to slow in the
  2019 financial year, yet remain above the national average.
• Population
  growth is expected to remain strong, which will support underlying demand for
  dwellings.
• Overall,
  the market is expected to remain close to balance over the next three years,
  although weak new house building activity would suggest a deficiency of houses.
• With
  high incomes in Canberra supporting affordability, this is expected to see 10%
  growth in the median house price over the next three years, to $745,000 by June
  2021.

Launceston

• Continued spill over of population and price growth from Hobart is expected to be felt in Launceston.
• However, the strong median house price growth in Launceston during 2017/18 has decreased its affordability relative to Hobart, and with Hobart prices showing signs of slowing, the recent pace of price growth in Launceston is not expected to continue.
• The median house price in Launceston is forecast to be $350,000 at June 2021, which is a cumulative 9% increase on the June 2017 median.

Adelaide

• Prices
  remain relatively affordable and the rate of population growth is expected to
  improve.
• Overall,
  Adelaide’s median house price is forecast to grow by 12% over the forecast
  period to reach $555,000 by June 2021, which will be a similar rate of price
  growth (4% pa on average) to that seen in recent years.

Act now to prepare for new opportunities

As capital city housing prices flatten across the board, it’s the smart investors who’ll take the plunge and invest in the regional hotspots primed for growth. Whether you’re an existing investor or new to property, what you do in 2019 will set the scene for your portfolio over the next decade.

Curious to explore how we can help you grow your property portfolio?

 Start with a free, no-obligation consultation or phone us on 02 8354 3000 to reach Sydney’s office or 02 4014 1999 to talk to someone in Newcastle’s office.

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