You don’t need a crystal ball to see that most observers of the Australian property market are predicting a flattening out of prices in 2016 for the big east coast capital cities.
Only time will tell if a slower market will see prices fall, according to Core Logic RP Data senior research analyst Cameron Kusher. “Over the past year Sydney and Melbourne have continued to see the strongest rates of home value growth however, over recent months we have seen values in each of these cities fall. Whether values in Sydney and Melbourne continue to fall or the rate of value growth just slows, will be one of the primary factors determining housing market conditions in 2016,” Kusher says.
But every market condition can always provide opportunities and according to LJ Hooker’s Head of Real Estate Christopher Mourd “Investing in a holiday home is likely to increase in 2016, with a rise in domestic travel likely to create demand for short term holiday rentals all over the country”. “There will be an increase in casual holiday letting,” he says. “Particularly for those planning retirement it could be the right time to buy a future retirement home and holiday let it out (for now).”
He says more buyers are now willing to share that holiday property with others by offering short term lettings when they’re not using it. For expats living and working in Asia or the UK, 2016 might also be the time to invest in a coastal/rural home.
The Bega Valley is well placed to take advantage of this prediction with a new airline now flying into the region from Melbourne .
But it’s not just holiday home hunters that will bring changes to the local market in 2016. One of the key factors in regional growth is infrastructure investment. While the construction phase fills short to medium term rental properties the tail of that investment brings jobs and an increase in demand for both the rental and sales markets. With the South East Regional Hospital opening in March providing new and increased medical services in the area there’ll be an increase in staff numbers and demand for local services. That increase in jobs will lead to an increase in spending and growth in the local economy that will filter out to the entire region.
So while the property front runners of the last few years Sydney and Melbourne are expecting a slow down for 2016, speak to the investment team Fisk and Nagle First Choice for some local investment opportunities with a solid long term growth trend.