2010 Property Predictions
Another year is upon us and with that comes the interesting part of property predictions. Many potential home buyers are waiting for the optimum time to enter the housing market. No one can say exactly what will occur over the next 12 months but here are some predictions.
Many of the nation's top analysts have predicted a modest growth of approximately 5-6% in 2010. It is also estimated that property prices will stabilize, thanks to the economy's ability to emerge and stay unexpectedly strong during the Global Financial Crisis. Another contributing factor for the predicted stabilization is the interest rate rises.
At the other end of the spectrum, some analysts are predicting dangers could be in the near future, in 2010. They base this conclusion on the looming possibility of further interest rate rises, as well as inflated prices and completion of the first home owners grant. It also fails to help that they see that the standard variable mortgage rate is predicted to increase as high as 8.51%. These analysts go on to say that the pressure and culmination of those factors will contribute to a negative outcome.
Another prediction, that will impact properties, is that employment prospects and stability will fare better this year than previously experienced. The economy is also set to grow at approximately 3%.
Most analysts agree that residential property will remain strong in the year 210, with BIS Shrapnel senior project manager, Angie Zigomanis, predicting the steady growth of 5-6% in established property in 2010.
Mr Zigomanis went on to say that, "I'd expect you'd see steady low-to-mid single digit growth next year." He also added that, "Over the next two or three years I think you'll find interest rates will keep slowly edging upwards and it'll keep a lid on the massive double digit price growth we were seeing previously."
Ray White Real Estate chairman, Brian White, also supports the growth percentage rate in 2010 by forecasting a similar 5% increase and added that it will become a vendor's market.
He continued to say that, "Now we're going into the new year with a number of interest rate increases occurring but with quite strong growth."
These forecasts have also been revealed for the following cities:
Sydney
Sydney is predicted to increase in value by 21% in the next 3 years. With unit and home values increasing, it can be assumed that Sydney is set for a revival. The Director of Metropole Property Investment Strategists, Michael Yardney, commented that, "There are now some great opportunities for investors to get back into the Sydney housing market and make decent long-term gains as things pick up over time."
Melbourne
The majority of Australia's growth is occurring in Melbourne and with the increased demand and restricted supply, property values are set to soar.
Brisbane
Unlike Sydney and Melbourne, Brisbane has displayed only modest growth. Despite the comparatively slow property growth, Brisbane has experienced dramatic population growth. Due to the combination of these factors, it can be predicted that there will be significant room for Brisbane's property market to increase in the near future.
