When looking at the outlook for residential property in Australia for 2016 from market experts and commentators, one thing becomes clear: no one is quite sure where the market is headed, and while there has been a slight decrease in both property investment and confidence, the market is still presenting good opportunities for first time investors and those looking to solidify their portfolios.
The ANZ/Property Council Survey
One of the most interesting indicators of market confidence and sentiment, the ANZ/Property Council Survey, has recently released its results for the March quarter. It is clear from the analysis that while housing construction levels were expected to decrease over the coming year, property would still remain a strong driver for the economy. There was also confidence shown in the health of the economy, which is generally one important factor behind people’s decisions to get into the market and purchase a property investment.
Interestingly, the survey recorded an average small boost of one point in industry confidence between the December and March quarters, with the ACT and NSW recording a moderate fall of 4 and 2 points respectively. Only Western Australia recorded a noticeable fall in confidence during the period.
Less Volatility, More Consistency
The other key discussion point for the majority of property market analysts is a levelling out of house prices during the year, leading to a more stable and consistent market. General sentiment can be summed up by the Head of LJ Hooker’s Real Estate, Christopher Mourd, who recently said that while the market was slowing, it was good news for both buyers and sellers as it gives them time to think clearly and for trends to be easily spotted.
Analysts also believe that 2016 will be a good year for anyone thinking about getting into the market for the first time. In the previous market where occasionally properties were being snapped up in the first 30 minutes of them being offered, it could be difficult to step back and think about what was best for your long term interests. First time buyers will no doubt be served well by a slowing market, with more time to make decisions and review their options about the type of property they want to invest in to ensure it matches their long term strategic investment plan. For example, looking at off the plan properties instead of established dwellings may be a more effective strategy, especially considering the generous incentives offered in some States, long term rental income and higher demand from tenants for brand new apartments.
As the case with all major financial decisions, it is important to get the right help from professionals. Ironfish is one of Australia’s most successful property investment companies, with dedicated local expertise, years of experience and exceptional research and data facilities. Contact them today to find out how you can secure your future with exceptional opportunities in 2016.