In examining property trends across the country, new analysis has uncovered some unique surprises in each of Australia’s capital city markets.
Tony Brasier, chairman and managing director of real estate giant PRDnationwide, talked about the firm’s report Australia Property Hotspots: 2nd Half 2016 and what it revealed about each capital city market.
For Melbourne, the amount of suburbs below the city’s median price lying in proximity to the CBD really stood out, he said.
“Focus is also moving heavily to the west as major businesses shift out of the CBD to western areas creating the need for housing in the area. Development activity has also turned some areas that have been ignored into economic hubs outside of the CBD.”
In Western Australia, the state has recorded the highest proportion of first home buyers in the country, Brasier said. This was due to a somewhat subdued market.
For Sydney, the property market had again gone without the widely predicted ‘bursting of the bubble’ instead demonstrating positive annual growth.
“The affordability ceiling has been reached in many areas putting continued pressure on buyers and the potential for further price stagnation.”
This stagnation would be driven by a number of factors, Brasier said, including:
- High levels of project development
- Improved job markets
- Improved CBD accessibility
“Despite continued interest in Sydney, affordable hotspots within 20km of the CBD remain primarily to the south west side for buyers looking for either houses or units.”
Hobart provided one of the standout performances in the Australian property market for the second half of 2016, Brasier said.
“The city has been flying under the radar for some time but is now providing some of the highest investment return figures in Australia. Low entry prices are encouraging investment which is further supported by the low vacancy rate and the high rental yields.”
Finally, Brisbane stood out as all three unit hotspots listed in the report had mainly two and three bedroom sales in 2016 and, opposed to other cities, had no recorded sales of one-bedroom units.
“This might be due to their household structure, where the dominant groups are couples with children,” he said.