It would be nice to have a crystal ball to see what this year holds for the Australian property market. It’s a challenging time for our country as a whole. With our hearts focused on the safety of our families and communities, it’s peace of mind to know that our investments will continue to grow steadily in the year ahead, giving us a sense of stability and security while we regroup as a nation and rebuild our homeland.
If the predicted property markets for Melbourne and Australia in general are correct, 2020 sees continuing low interest rates, (maybe even the possibility of even lower interest rates). And while little supply has been added, land and apartment markets should improve, especially in the first half of the year.
After finishing surprisingly strongly at the end of 2019, the confidence has continued with soaring prices. Some experts have gone on to say that values are projected to rise by at least 14 percent in cities like Melbourne and Sydney. AMP Capital chief economist Shane Oliver said, Melbourne could hit record highs February or March and Sydney could be in May. Which sounds like great news for investors.
The predictable factors of the broader economies’ stability and international influences will play their part in the confidence of the market as usual, however steady growth and stability is expected for at least the next six months. Some advisors predicting the boom may be far from over, but possibly just beginning.
The most interesting trends witnessed in the property market late last year and predicted for more growth in 2020 are the locations that are booming. Australia is quietly stepping away from the traditional investment choices. While we still saw good growth in predictable suburbs like the forever trendy, Toorak; some unpredicted areas away from the city centres saw high value rises.
Areas like a small town 220kms away from Melbourne’s CBD, Numurkah, saw the greatest growth at a 16% increase. What’s Numurkah’s draw card? It’s known for its local artisanal products like hand made cheese and locally produced wines. So the real question is, are people wanting a slower pace and a more relaxed way of living away from city centres? Are people being forced into rural areas for affordability? Or are smart investors just making the most of unique locations that offer good short term rental potential managed to perform at peak periods and quietly growing their portfolio in line with real market prospective?
Rental potential and steady growth on managed apartments and unique homes is gaining momentum across Australia and internationally. Wise investors understand these market shifts and can gain real earning value on knowing how to expand their returns on each of their properties. Acknowledging high growth areas early and maximising the individual qualities each town offers, can sustain and flourish short term rental earnings when managed professionally.
We are no longer stuck in a sluggish growth market where slow and steady are the mottos for property investment. Managed properties can turn smart property choices into healthy portfolios.