SPRING is in the air, bringing hope for a bright start to the property market. But which state will have the brightest start?
“Some people look forward to Christmas time, we look forward to spring,” said Chairman of Ray White Group, Brian White.
With spring traditionally the time for new listings, Mr White said there is a more hope than there was this time last year.
Listings are up on 2011, vendors are putting big efforts into selling and buyers are adopting the attitude that now is as good a time as any to buy a property.
“There’s a general attitude that interest rates are probably going to stay where they are for a period of time so buyers may as well get on with it and if they want to buy a property,” he said.
Dr Andrew Wilson, senior economist for Australian Property Markets, said there is a lot more optimism in the property market this spring than last spring.
New South Wales:
The top-end property range in Sydney has had big challenges but in general Sydney has remained strong throughout the cycle, according to Mr White.
“We expect pretty solid interest from purchasers over the spring season,” he said.
Sydney will be one of the hot spots this spring particularly in the mid and lower sections of the market.
“They are already showing signs of activity this year and we’re starting to see some prices growth emerge and we would expect this to continue,” said Dr Wilson.
Queensland has been one of the most hurt markets in Australia but things are looking up and could improve more than anywhere else this season.
“This winter has been far more active than last winter,” said Mr White. “There’s good action on the Gold Coast and Sunshine Coast with a lot of price adjustment in those areas leading to more transactions.”
Brisbane is not seeing much price growth despite an increase in buyer activity.
“I would expect Brisbane to gradually improve, although there are some issues in the local economy in terms of job cutting in the public service which might keep that middle market sitting on its hands for a while,” said Dr Wilson.
One of the great success stories in 2009 and 2010 has fallen away but Mr White hopes it will be up by about 7 or 8 per cent in spring.
Concerns over the direction of the Victorian economy will impact the spring property season this year and much of the activity has been driven by first-home buyers.
Dr Wilson says that the Melbourne market will be relying on some continued momentum in the top-end of the market to keep it going.
While buyer interest is up, stock is down in WA.
“Some people were surprised how tough the WA market has been but a lot of the employment was from fly-in fly-out – but it’s in better shape now than it has been for a little while”
Dr Wilson said all of the right boxes are being ticked for the Perth housing market. “It’s almost a perfect storm of fundamentals which will lead to price growth and a recovery in the market by the end of the year,” he said.
Darwin is hot right now. Lots of buyers but very little property on sale is driving prices higher. Positive news in the economy and a new government will lead to a honeymoon period in the property market.
“Spring isn’t as dramatic in Darwin,” said Mr White. “It’s performed well all year.”
South Australia has hurt the most over the past couple of months and is one of the most difficult states in Australia. Consumers took a bit of a battering recently with the shelved plans of BHP’s Olympic Dam so the region will be looking to boost confidence in buyers.
“Adelaide has been treading water to a certain degree…and the scrapping of the Olympic Dam project puts a question mark over the forward position of the SA economy which will impact on confidence,” said Dr Wilson.
Great action happening at the moment in Tasmania and it’s the other state to be optimistic about. “We see signs of a bounce back and can see demand lifting and investors and mainland buyers returning because interest rates are down and yields are up,” Martin O’Byrne, agent at Roberts, Western Junction told The Australian.
BY SARAH O’CARROLL – August 31, 2012