Real estate markets can expect to grow in 2016, says Raine & Horne chairman Angus Raine, because the falling share market is driving investors towards the safety and higher yields available in property.
So far this year share markets have declined, with Chinese shares falling 14.6%, US equities 5.2%, Eurozone shares 6.2%, Japanese shares 9.5% and the Australian market down 6.8%, according to research from AMP Capital Investors.
Raine says this should put focus on the solidity of property markets like Sydney’s. “Many of the same fundamentals remain in play, such as Sydney’s continued population growth, as well as our strong economy, improved employment figures and low interest rates,” says Raine.
“Around 50,000 people move to Sydney annually and they all need somewhere to live, while there is a good chance we’ll see more rate cuts in the middle of the year.”