Property Trends to Look Out for in 2019
The nation’s housing market is commonly discussed, and with so many voices shouting predictions and forecasts, it can be hard to sort the facts from the fears. Undoubtedly there have been a lot of changes in the property market, particularly in the major cities, where we’ve finally seen a fall in ever-increasing house prices. But the latest property trends don’t necessarily spell gloom and doom. Whether you are a buyer, seller or investor, it always pays to know what’s happening, so we’re taking a look at some property trends to look out for in 2019.
Property prices are falling in Sydney and Melbourne
It shouldn’t surprise you to know that property prices in Australia are falling, but where are they falling and by just how much?
The media often creates fear around this idea of falling house prices, but in reality, it is the major cities of Sydney and Melbourne where the effects are being felt most. Even then, prices are falling slowly, not dramatically – around 5 -10% in these two biggest cities. In many parts of Australia, the housing market remains steady. The falling prices in major cities can be attributed to tighter restrictions on credit, rising interest rates and increased unit development in anticipation of population increases.
It’s important to understand that falling prices are part of a natural cycle, and many experts predict that the price drop is a quick correction of the market after a sustained period of growth. Most experts agree that we will not see a market crash and growth will soon follow the downturn. Property prices are expected to continue dropping in 2019 before stabilising and rising again in 2020.
This trend presents a great opportunity for first home buyers. For some time it has been difficult for first home buyers to get into the market, but with lower property prices and stamp duty concessions, it could be a perfect time to become a homeowner.
Brisbane and South East Queensland prices remain steady
Unlike Sydney and Melbourne, Brisbane has seen continued growth in property prices. According to BIS Oxford Economics, Brisbane property prices will continue to remain steady. Brisbane and South East Queensland have been a major area for relocation, and with that comes increased population, jobs and low unemployment rates.
Experts predict that any fall in property prices here will be small, and overall growth is expected. It’s a positive prediction for homeowners in Brisbane and its surrounding areas.
Unit values outperform houses in major cities
In 2018 units values outperformed houses in the capital cities. This trend is likely to continue in 2019. According to CoreLogic’s Home Value Index for September 2018, home prices across Australia fell by 0.6 %, while unit values were only down by 0.1%. It’s good news for those who own apartments in the major cities.
Regional markets will perform well
Major city dwellers are increasingly looking to regional areas in search of affordable housing and lifestyle. According to the McGrath Report 2019, the regional areas within a 90-minute radius of major cities are a popular option with their ‘impressive population growth, buzzing local economies, improved amenities and infrastructure, affordable housing and increasingly attractive lifestyle as our capital cities get busier and more expensive.’
This trend should see those regional markets perform well due to increased demand and buyers looking for further afield for value.
The kitchen isn’t what it used to be
It may come as a surprise when you consider the number of cooking shows on television, but according to the McGrath Report 2019, Australians are rethinking the kitchen. The kitchen is taking a back seat, thanks to the popularity of home-delivered meals and our burgeoning cafe culture. While still a social hub in the home, less priority is given to this space as a food preparation area, rather it has become a space for socialising, study and work, where minimalism is key.
If you’re looking to sell in the current market then rethinking your kitchen space could be a major drawcard for new buyers.
At Mortgage House, we are no stranger to the homeowner’s journey. It’s a long (but rewarding) one.
If you’re thinking of buying, selling or investing in 2019, you can contact us. We’re here to help you achieve your new year property goals!