After the last few years of (let’s face it) insane growth in the Australian housing market, there’s a lot of conflicting information out there as to what to expect in 2018.
Reporters and forecasters seem to suggest that anything’s possible. Opinions are divided between optimistic headlines, such as “Sydney Market Set to Rise by 8%” and doom and gloom of headlines like, “Australia’s Housing Boom is at an End.”
So we’ve condensed main reports and studies into an easy-to-follow forecast for 2018. While no-one has a crystal ball, and nothing can be certain, this should help you cut through some of the confusion.
Off the back of the housing boom, and the continued conversations around housing affordability, the last twelve months has seen a huge surge in apartment development proposals; which has dramatically increased the supply of new apartments around major city centres.
According to QBE’s Australian Housing Outlook for 2017-2020, this oversupply could lead to apartment prices in our Eastern Seaboard falling between 4 and 7 per cent by 2020.
However, QBE Lenders' Mortgage Insurance chief executive, Phil White, predicts that the opposite will be true for detached houses; which he predicts to continue to grow.
A Slow Start
The general consensus seems to be a slow start to 2018, but one expert is backing a big lift towards the second half of the year.
SQM Research Managing Director, Louis Christopher – who was described earlier in 2017 as “arguably the country’s most accurate forecaster” – predicts that while the market may start slow, it will pick up in the second half of 2018.
This initial slow patch could mean that the first half of the year provides the best opportunity for buyers looking to get into the market.
Go West (Or North)
While the inner city of Sydney is still offering great returns for cashed-up investors; Australian Property Managers, Strata Data, suggest that the smart bet for first home buyers is to look west of the Harbour City, or further up the coast.
“Like in Melbourne, Sydney’s outer suburbs are reasonably affordable options with great lifestyle benefits. Regional areas are also good options.”
So if this is your year to get into the housing market, then looking out of the inner-city is probably your best bet. If you’ve ever considered making a tree change, then make sure you take a peek at some of these stunning options. We also have House and Land packages in some of greater Sydney and the Hunter region’s most sought after new estates.
Easier For 1st Home Buyers
Between the changes to stamp duty for first home buyers, the Chinese government making it harder for Chinese investors to invest in the Australian housing market, and the slow start to 2018 we mentioned earlier; the first half of 2018 is looking good for first home buyers.
So if finally buying your dream home is part of your plans for 2018, then take the first step, and take a stroll around one of our display homes at Airds, Wallis Creek or Leppington; or take a virtual tour here.
You May Be Closer than You Think
When you first start to try and do the calculations, it can feel as though purchasing your first home is simply unachievable – especially when you read some of the nay-saying articles out there.
However, it could be a lot more achievable than you think.