Property buying trends come and go like everything else. In 2019, the property markets in leading cities such as Sydney and Melbourne are predicted to exhibit these property-buying trends.
13th March 2019, Sydney
The property markets of Australia’s major cities, such as Sydney, Melbourne, Adelaide, etc. have depicted some astounding buying trends. There have been price accelerations in the respective property markets of these cities in the recent quarters. However, as of now, the median price has fallen for houses for sale in Sydney and other cities. Given the median price growth of residential homes in the last ten years, this is a significant drop in amount.
Experts believe that such positive shifts in the market prices are responsible for defining the buyer trends heading into 2019. Some of those trends are:
i. Decisions influenced by the elections
The political parties have voiced a lot of opinions regarding the Capital Gains Tax (CGT) and Negative Gearing (NG) that they wish to bring into practice. Thus, a lot of prospective home buyers are expected to make decisions based on the outcome of the election, as the subsequent changes made to property asset prices and taxes can realistically influence rental prices, interest rates, etc.
ii. Properties built for rent-outs
An exciting trend is predicted to continue into 2019. The growing requirement for affordable housing, housing for middle and lower income groups and aboriginal housing will fuel residential estate projects that follow a built-to-rent model.
Real estate companies in Sydney are teaming with investors to develop low-risk, cost-effective residential establishments for long-term tenants.
iii. Private equity and peer-to-peer lending rise
Private equity is on the rise as far as investments for residential property development is concerned. More and more developers are turning to their peers and individual equity holders for investments that banks are not expected to approve. The investors are cashing in on the opportunity for a handsome return from the houses for sale in Sydney.
iv. Supply failing demand
The demand for quality residential assets has gone up. With the rise in demand from immigrants, there is further pressure on developers to provide home solutions. Favourable pricing conditions will further pressurise the real estate companies in Sydney to deliver.
v. Hike in demand for affordable housing
Experts have established that high-end properties do not project a demand like before. There is bulk requirement for affordable housing with social and commercial amenities.
So, real estate companies can benefit by shaping their strategy according to these buyer trends, for this year.