RAY WHITE NOW THIS MONTH
Although I ’ m 100 per cent sure that all property forecasts published right now won ’ t get the outlook spot on , one thing we can be certain about is that this year , price growth will be slower than last year . Interest rates are now on the move and with this , growth in the cost of finance , as well as increased difficulty in getting finance . This in turn influences sentiment and we ’ re firmly in the next stage of the housing cycle .
While interest rates are one influence on the market , they ’ re not the only one . Property is far more complex than that and depending on where you ’ re looking , it can be influenced by a wide range of other factors including population growth , construction costs , land prices , urban regeneration , access to finance ( ease of lending ), increasing wealth , government policy , the level of debt that people hold , sentiment towards property and localised economic growth . This month , we take a look at regional Australian property markets . Since the start of the pandemic ,
they ’ ve been particularly strong performers and very low interest rates have been only part of what ’ s driven them .
If you bought pretty much anywhere at the start of the pandemic and sold now , you ’ d have likely been the beneficiary of a particularly high capital gain on your property . But with house prices now starting to soften , is house flipping still going to yield the same return ? We take a look at how profitable it ’ s been over the last decade .
Finally , as we head to net zero in 2050 , how ’ s the property industry responding to rising expectations about emissions , energy efficiency and green buildings ?
Nerida Conisbee Chief Economist Ray White Group
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