There's a variety of threads on the economics boards atm (links below) concerning the status quo of a variety of property "markets" in this Australia.
From an economic perspective property markets are defined by the type of property, its geographic location, its potential uses, and time.
To get an accurate picture of what a particular market is doing, you first need to define that market.
That being the case, it is worthwhile asking yourself these sorts of questions:
- What types of properties are in the same market? Units and houses? Farms and tree-change lots? 2 bedroom places and 4 bedroom places?
- What is the geographical nature of the market? Is Sydney one market? Are there markets in, for example, the eastern suburbs, north shore, etc? Are the markets more specific - are they suburb based?
- What are the potential uses of the property in question? Who may want to buy it (owner-occupiers, investors)? It it a case of wysiwyg*? Or could it be renovated, redeveloped, subdivided, re-zoned, re-purposed?
- What else is for sale at this point in time that is comperable to this property? (bearing in mind the other factors above)
I think it is good to have an appreciation of wider trends, but as you cast your net wider and take account of more information the picture may only get fuzzier and it may not neccesarily help your purchasing decisions.
I also think it is worth noting that buying property well is about being selective. It is not about simply buying an otherwise forgettable piece of suburbia and riding the state of the wider market, but achieving returns above and beyond.
The reason I say this is that during booms just about anywhere is going to appreciate. During slumps or periods of slow growth, then the "Sydney", "NSW", or "Australian" property markets may do bugger all for years on end.
But somewhere, out there in property investment land, there is always a particular market where the realities of demand and supply are in its favour.
I am always looking for such markets.
Mark
*wysiwyg - what you see is what you get
Melbourne set to boom (eventually)
More bad news on the Sydney market
Analyzing the state of the WA market
Where is NSW in the property cycle?
Current state of play for the Australian property market
From an economic perspective property markets are defined by the type of property, its geographic location, its potential uses, and time.
To get an accurate picture of what a particular market is doing, you first need to define that market.
That being the case, it is worthwhile asking yourself these sorts of questions:
- What types of properties are in the same market? Units and houses? Farms and tree-change lots? 2 bedroom places and 4 bedroom places?
- What is the geographical nature of the market? Is Sydney one market? Are there markets in, for example, the eastern suburbs, north shore, etc? Are the markets more specific - are they suburb based?
- What are the potential uses of the property in question? Who may want to buy it (owner-occupiers, investors)? It it a case of wysiwyg*? Or could it be renovated, redeveloped, subdivided, re-zoned, re-purposed?
- What else is for sale at this point in time that is comperable to this property? (bearing in mind the other factors above)
I think it is good to have an appreciation of wider trends, but as you cast your net wider and take account of more information the picture may only get fuzzier and it may not neccesarily help your purchasing decisions.
I also think it is worth noting that buying property well is about being selective. It is not about simply buying an otherwise forgettable piece of suburbia and riding the state of the wider market, but achieving returns above and beyond.
The reason I say this is that during booms just about anywhere is going to appreciate. During slumps or periods of slow growth, then the "Sydney", "NSW", or "Australian" property markets may do bugger all for years on end.
But somewhere, out there in property investment land, there is always a particular market where the realities of demand and supply are in its favour.
I am always looking for such markets.
Mark
*wysiwyg - what you see is what you get
Melbourne set to boom (eventually)
More bad news on the Sydney market
Analyzing the state of the WA market
Where is NSW in the property cycle?
Current state of play for the Australian property market