Foreseeing 2015 Property Market Trends

In an article for the Switzer Daily, John McGrath expresses his lack of bullishness about Sydney’s property market prospects in 2015. He does not expect the market to take a reverse turn but certainly anticipates a mellow down in prices.

What trends will affect 2015 property prices

How cash rate moves, share market behaves and other economic factors like overseas buying frenzy shapes up will decide how the real estate in Sydney patterns over the next 12 months or so, feels McGrath. Brisbane, on the other hand, might be the new star entry, not packing phenomenal numbers like Sydney but showing consistent growth from here on. This might be due to the cumulative effort of the FHBs, owner-occupiers and investors.

Brisbane might be the new star entry

There will be an increase in supply in Sydney and Brisbane but demand will easily outpace it. Investors will keep borrowing against their SMSFs to invest in property. Apparent population explosion will keep supporting price growth and bottomed-out interest rate environment will give investors plenty of heart and they may decide to make hay while the ‘Stevens’ sun is shining. Rental returns may be strong for the capital cities, too.

You can read the original article here.

Rental decline on the cards for the capital cities

I only beg to differ where McGrath talks about blossoming rental yields for capital cities. To me, the impression is one that of falling rental yields in the capital city markets. In fact, I foresee yield dropping below 5% and this is why it may not be wise to invest in $million properties for some time to come.

What property market trends do you foresee for 2015?