theSun Property January 2016

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ON FRIDAY JANUARY 22, 2016
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For foreign buyers, the buying
power remains pretty significant
claims Mourd. A slow down is
expected where domestic buyers
are concerned. This is due to the
internal changes in lending
criteria. It is also said that this
slow down will have a knock-on
effect. “The type of property
domestic buyers purchase are
usually entry level stock. This
slow down in domestic investing
will allow first home buyers to
return to the market,” Mourd
explained.
With the buying power of
foreigners better than that of the
PART2
IN a nutshell, last week’s article
on the US and the UK property
market suggested that demand
has exceeded supply in the US
and developers will be increasing
the construction of single-family
and smaller housing units into the
year; while house prices are
expected to fall into the year, after
the increase of stamp duty rates in
the UK. This week, we take a look
at what is expected of themarket
DownUnder.
DOWNUNDER
According to Australia’s realestate.
com, which quoted LJ Hookers
head of real estate, Christopher
Mourd, prices are set to become
more consistent in 2016. “The
market is definitely slowing, with
growth slowing, people can (now)
make better decisions. Amore
consistent market means both
buyers and sellers can see what is
really going on.”
Apparently, themarket has
witnessed a rise in the price of
property throughout 2015. HIA
senior economist Shane Garrett
commented: “Activity is at such a
high level … it can’t be kept at such
a high level.” He also said that as
economies in other parts of the
world improve, there is a drop in
the number of foreigners going
over.
CoreLogic’s RPData senior
research analyst Cameron Kusher
said – “Only time will tell if a slower
market will see prices fall”. He
added that while Sydney and
Melbourne had seen the strongest
rates in home value growth over
the past year, the recent months
had seen these values slide. He
reckons that whether these values
are just low for a bit or decline
further will determine the housing
market conditions for this year.
His take on Adelaide and
Hobart: “Markets will likely see
fairlymoderate levels of value
growth”. On Perth andDarwin, he
says: “We anticipate further value
fall”.
While a “slower market” is good
news for buyers, especially first
homebuyers, sellers are likely to be
clinking glasses to good deals as the
rate of economic growth gets back
on track. Generally, the report
described the 2016market as
“taking a breather”, which should
give buyers “increased confidence
in the property process”. Moreover,
with the growth of prices slowing
down, sellers will be in the position
to trade out of their current homes
into newones.
AUSTRALIANRESIDENTIALPROPERTYPRICE INDEXES
(InforetrievedfromtheAustralianBureauofStatistics)
RESIDENTIAL
PROPERTY PRICES
June Qtr 15 to
Sept Qtr 15
% change
Sept Qtr 14 to
Sept Qtr 15
% change
Weighted average of
eight capital cities 2.0 10.7
Sydney 3.1 19.9
Melbourne 2.9 9.9
Brisbane 1.3 3.8
Adelaide 1.2 3.5
Perth -2.4 -3.3
Hobart 0.5 1.7
Darwin -0.4 -2.0
Canberra 1.3 4.0
Total value of the dwelling stock Sept Qtr 15
Value of dwelling stock (a) (A$million)
Mean price of residential dwellings ($’000)
Number of residential dwellings (‘000)
5 859 824.6
612.2
9 572.4
CHANGES TO RESIDENTIAL PROPERTY PRICE INDEX
• The price index for residential properties for the weighted average
of the eight capital cities rose 2% in the September quarter 2015.
The index rose 10.7% through the year to the September quarter
2015.
• The capital city residential property price indexes rose in Sydney
(+3.1%), Melbourne (+2.9%), Brisbane (+1.3%), Adelaide (+1.2%),
Canberra (+1.3%) and Hobart (+0.5) and fell in Perth (-2.4%) and
Darwin (-0.4%).
• Annually, residential property prices rose in Sydney (+19.9%),
Melbourne (+9.9%), Canberra (+4.0%), Brisbane (+3.8%),
Adelaide (+3.5%) and Hobart (+1.7%) and fell in Perth (-3.3%)
and Darwin (-2.0%).
TOTAL VALUE OF THE
DWELLING STOCK
• The total value of residential
dwellings in Australia was
A$5,859,824.6 million at the
end of September quarter
2015, rising A$137,125 million
over the quarter.
• The mean price of residential
dwellings rose by A$11,900
to A$612,200 and the number
of residential dwellings rose
by 38,600 to 9,572,400 in the
September quarter 2015.
Property
> Professional viewon Australia for 2016
locals, investment properties like
holiday homes, retirement homes,
casual holiday rentals and short
term leasing will most likely
increase. Mourd’s suggestion –
“For those planning retirement, it
could be the right time to buy a
future retirement and holiday
home, and let it out (for now).”
Follow our column next week to
learn of what is expected in the
property market across Asia.
outlook