According to property market research firm Propertyology, growth in dwelling prices over the next five years will be higher than in the last five years. Head of Research Simon Pressley says that price growth will be more common in the future than in recent years, where development has been focused on a very few areas.
He warns of price growth in major markets late in 2019 may tempt buyers into believing a new market cycle begins in the most expensive cities. “Those participating in 2020 would be wise to focus on the fundamentals,” he says. “Within a year or so, the current stimulatory policies will be gone and Australia’s best-performed markets will be the ones that always had the strongest fundamentals.”
There are also plenty of potential property hotspots around the country, and the big cities do not automatically have them. There are numerous smaller towns and regional markets tipped to produce a solid performance.
“History is proof that the best performers often aren’t among the capital cities, so anyone who invests in Australian real estate without analyzing the fundamentals of all options is accepting the very high odds that they won’t do anywhere near as well as they could,” Mr. Pressley explained.
“This means that, even with a very small deposit, the annual cost to hold investment property is near zero, so whether you’re using cash or equity in an existing property, do something proactive for your future and get in the game this year,” Mr. Pressley concluded.
Trent Wiltshire, a domain economist, suggests investors focus on Brisbane and the Gold Coast which offer value for money.