With 2012 well under way it will be interesting to see what happens to the Property Markets across Australia this year.
Most of the indicators would suggest that in 2011 the property markets had bottomed and we should see steady growth throughout most of Australia for the remainder of the year.
So as an investor what does that mean for you?
Firstly if you are buying into the bottom of the market there is a lot of potential upside. In other words if you buy well there will be a great opportunity for you to increase your equity as the market improves.
Secondly as the market has remained tight for the last 12 months with limited construction taking place across Australia, we have again seen a shortage of rental properties. So that means that properties are achieving record rents in many of our capital cities across Australia.
Where are the opportunities?
It is true that there are opportunities throughout Australia. However one of my picks for 2012 is Brisbane. The reason for this is because of the floods that occurred around 12 months ago, along with a lack of confidence in the Queensland government, have led to a serious lack of confidence in the local economy and that has fed into the Property Market. Because of this, it is my view that the Brisbane market is undervalued compared to most other cities in Australia. For instance you will pay a lot less for property compared to Melbourne or Sydney and yet rents are about the same with an inner city 1 bedroom apartment commanding more than $400 per week.
I think that with a change of government in NSW, the property market appears to be improving. However it is still an expensive market. In Melbourne the property market has been steady for most of 2011 and there are signs that there will be improvement in 2012. Most other property markets we currently have under review.
I think we will need to watch Europe carefully in the first quarter. I think that it is highly likely that a number of countries will default on their debt. Although I think it is unlikely to have a major effect on the Australian economy, there is a strong chance that it could lead to a liquidity problem in our finance markets making construction finance tight in 2012.
Most of the indicators would suggest that in 2011 the property markets had bottomed and we should see steady growth throughout most of Australia for the remainder of the year.
So as an investor what does that mean for you?
Firstly if you are buying into the bottom of the market there is a lot of potential upside. In other words if you buy well there will be a great opportunity for you to increase your equity as the market improves.
Secondly as the market has remained tight for the last 12 months with limited construction taking place across Australia, we have again seen a shortage of rental properties. So that means that properties are achieving record rents in many of our capital cities across Australia.
Where are the opportunities?
It is true that there are opportunities throughout Australia. However one of my picks for 2012 is Brisbane. The reason for this is because of the floods that occurred around 12 months ago, along with a lack of confidence in the Queensland government, have led to a serious lack of confidence in the local economy and that has fed into the Property Market. Because of this, it is my view that the Brisbane market is undervalued compared to most other cities in Australia. For instance you will pay a lot less for property compared to Melbourne or Sydney and yet rents are about the same with an inner city 1 bedroom apartment commanding more than $400 per week.
I think that with a change of government in NSW, the property market appears to be improving. However it is still an expensive market. In Melbourne the property market has been steady for most of 2011 and there are signs that there will be improvement in 2012. Most other property markets we currently have under review.
I think we will need to watch Europe carefully in the first quarter. I think that it is highly likely that a number of countries will default on their debt. Although I think it is unlikely to have a major effect on the Australian economy, there is a strong chance that it could lead to a liquidity problem in our finance markets making construction finance tight in 2012.
nly a handful of houses for under $300 pw, 12 months ago there were plenty at $270pw. South west Sydney has also seein significant rise in rents. I havnt compiled stats, just go by memory
