Do we really know what will happen to the Property Market in 2019? Do we ever really know what the property market will do period? There are some indicators that allow us to determine some of the property trends for the coming year, but there certainly isn’t a crystal ball outlining exactly what will happen and where.
As we launch into a new year there’s a lot of mixed chatter about the 2019 markets, some full of uncertainty and others full of hype, and there is no shortage of so-called ‘experts’ looking to predict the future. Buzzwords like property market predictions, real estate cycles, property hotspots are currently being touted, but how accurate are they and should we listen to them? Despite the uncertainty, there are a few similar key themes and trends a number of industry experts are running with for 2019.
Top Popular Property Market Predictions for 2019
1) Softening of the Melbourne and Sydney markets – after years of solid growth, a common theme amongst property experts is that these buoyant markets will slow or soften indefinitely. However, this doesn’t mean buying will slow down, as it presents First Home Buyers an opportunity to jump back in. Some experts are even calling it a ‘golden opportunity for buyers’, suggesting if you fail to jump into the market in 2019 you may miss out.
2) Growth around Australia will continue to slow, led by falling values in major cities and the tighter lending standards from Australia’s banking regulator APRA. This is an expected side effect to the Royal Banking Commission, which has left our banks allergic to risk.
3) That said Investors should return to the market since APRA, in December 2018, lifted their restrictions on interest-only loans to investors and the RBA Governor has encouraged the banks to lend more.
4) Most major cities will experience price declines over the next 12 months but moving forward Brisbane looks set to show the strongest growth over the next three years, jumping 13 per cent to a median of $620,000. An oversupply in the apartment sector is dragging down Brisbane’s wider housing market, but the sunshine state is starting to see a boost in interstate migrants — particularly from Sydney — with prospective buyers lured by Brisbane’s comparative affordability.
5) There continues to be an oversupply of CBD apartments across all major cities.
6) Population growth will absorb the huge supply of new dwellings from the recent construction boom, although any growth in rental will be minimal.
7) The good news and consensus is that our housing markets won’t crash, being underpinned by record low interest rates, a “relatively stable, albeit subdued, economic environment” and strong population growth.
Key Economic Predictions:
* Interest rates to rise a little over the next 3 years – but only by 0.5%, not the large increase in rates some are predicting, and this is unlikely to occur until 2020
* Inflation slowly nudging its way up
* Employment growth continuing, albeit at a slower rate and the unemployment rate holding steady
* Continued strong population growth due to overseas migration
* Our economy growing much the same as it has in the last few years.
SUBURBS TO WATCH IN BRISBANE 2019:
Suburb/Municipality/Dwelling Type/Current Median Price
Albany Creek Moreton Bay H 585,000
Alexandra Hills Redland H 470,000
Annerley Brisbane-south H 720,000
Bald Hills Brisbane-north H 440,000
Banksia Beach Moreton Bay H 560,000
Bethania Logan H 365,000
Burpengary Moreton Bay H 465,000
Camira Ipswich H 407,000
Cleveland Redland H 620,000
Clontarf Moreton Bay H 445,000
Corinda Brisbane-south H 745,000
Eatons Hill Moreton Bay H 600,000
Geebung Brisbane-north H 545,000
Gordon Park Brisbane-north H 845,000
Graceville Brisbane-west H 905,000
Indooroopilly Brisbane-west H 905,000
Indooroopilly Brisbane-west U 475,000
Kenmore Brisbane-west H 700,000
Kippa Ring Moreton Bay H 430,000
Logan Reserve Logan H 410,000
Mansfield Brisbane-south H 680,000
Mt Cotton Redland H 550,000
Ormiston Redland H 680,000
Redcliffe Moreton Bay H 440,000
Redcliffe Moreton Bay U 415,000
Stafford Heights Brisbane-north H 605,000
Sunnybank Hills Brisbane-south H 680,000
Tarragindi Brisbane-south H 775,000
Tingalpa Brisbane-east H 555,000
Wakerley Brisbane-east H 755,000
Wynnum West Brisbane-east H 540,000
(Source: The Price Predictor Index)
As you can see they predict strong economic fundamentals – which is the key underpinning to a stable property market ahead. For more detailed information on the property market in 2019, our iThink Property Real Estate Agents in Ipswich and Toowoomba would be happy to assist.
iThink Property has a team of real estate agents in Ipswich and Toowoomba offering property sales and property management services. With a passion for people and property, iThink Property was conceived with the notion of building a team of good people to work in a real estate brand that did things differently. iThink Property focuses on transparency, communication, innovation and teamwork and has become a leading independent brand with unique points of difference. So whether you are thinking of buying, selling or renting, think iThink Property.
KYLIE WALKER – DIRECTOR – BUSINESS DEVELOPMENT & MARKETING
0439 895 808
Starting out with a career in the media, Kylie brings a wealth of communication and marketing skills to the team at iThink Property. She helped launch and develop the company’s rent roll several years ago and has organically grown the business with iThink Properties rental network now spanning Ipswich, greater Brisbane, Toowoomba and the Gold Coast.