Australian Property Forecast 2016

We will remember 2015 as the year when the Australian Prudential Regulation Authority (APRA) stepped in to try and slow down the investor frenzy, introducing guidelines to major lenders that resulted in capping the growth rate of their residential investment loans. 2015 saw an end to the lowest auction clearance rates in a decade, agents listing and selling property like it was candy encouraging and vendors accepting pre-auction offers, more buyer than properties for sale.

2015 will also go down in Australian history as the year of falling rental yields, rising house prices, rising investment loan interest rates and declining buyer confidence. 2015 could go down in history as the year the property boom in Sydney and Melbourne came to a whimper.

• Brisbane performing the best at 1.30 per cent positive growth along with having the highest unit rental yield of 5.3 per cent.

• Sydney performing the worst at -2.3 per cent negative growth

• Hobart is still the most affordable capital city to purchase property along with having the highest house rental yield of 5.4 per cent.

It’s not all bad news for property owners and investors as prices have been steadily rising since June 2012. The complete year results for Australian Property is a positive growth of 7.8 percent. Both Sydney and Melbourne recording over 11% capital growth in 2015, not to forget the rental yield all investors have been receiving in addition to the capital growth. Is this the top of the market? Personally I don’t think so but I do believe that the sellers’ market that we have been in for the last 2 years is over. The next 6 months will provide us with a buyer sentiment so it will be imperative to watch the auction clearance rate, capital growth, and rental yield numbers.

RP Data had this to say about 2016:

“If, like many, you were outbid on your dream home in 2015 by a buyer with deeper pockets, then this could be your year.

Property Forecast 2016

Property markets will not crash altogether. There will only be selectively healthy price growth. Foreign investors will be paying a little more than what they did for Australian properties they amassed in the past three years before these investor lending changes.

Despite their 2015 performance, Sydney and Melbourne property markets still top the growth rate due to strong economic, jobs, and investment growth as well as massive population and immigration growth. Around 60% of immigrants come to these two cities for business and employment. Many property investors are still targeting these two cities for their capital growth. Rent rates fell over the year in Brisbane, Perth and Darwin, and other major cities have seen rents rise by less than 1.5% over the year.

Home prices have continued to rise across most of Australia, particularly in Sydney where they have jumped about 40% since the past year. Investors dominated new lending. The Reserve Bank of Australia reduced interest rates in February to 2.25% and again in May to 2%. The lowest RBA cash rate in our history and are not in a rush to increase them. Earlier this month, Reserve Bank of Australia Gov. Glenn Stevens said the bank was working with other regulators to assess and contain risks that could arise in the property market.

Despite arguments around the effectiveness of these APRA policies, the new guidelines have made investors and borrowers more calculating. They seem to have adjusted their expectations in seeking investment property loans.

Mortgage brokers, financial planners, and property investment experts are still digging up more data to dissect global figures and movements that are affecting the Australian Market, housing prices, and the overall property market to forearm their clients.

The last quarter of 2015 has certainly shown us again that the Australian Property Market is not immune to negatively finishing the turbulence with capital dwelling values declining by 1.4%.

As we move into 2016, it is clear that the strong housing market conditions of 2015 have softened over the final months of the year, setting the scene for more sedate conditions in the New Year.

Interest rates are likely to remain at their current historically low setting, which will continue to stimulate housing demand, however migration rates are continuing to taper which will offset some of this housing demand, particularly in the mining regions, which were previously benefiting from strong rates of migration from both overseas and interstate.

Clearance rates in Sydney and Melbourne slipped from the high 80% mark around the middle of last year to the low 60% range in December. Listing numbers are rising, homes are taking longer to sell and value growth has slowed sharply in Sydney and Melbourne, which were the primary drivers of growth over the recent growth cycle.

Throughout 2016 we may see further moderate value declines in Sydney and Melbourne, however considering population growth has remained strong in these areas and economic conditions are very healthy in these cities, we would be surprised if dwelling values fell materially before conditions start to level. The city that is showing the most promise for capital gains in 2016 is Brisbane, or for that matter, the broader South East Queensland region. Yields are much higher compared with Sydney and Melbourne, the rate of capital gain has been moderate but sustainable to date, and affordability is far superior to the two larger cities as well. Interstate migration remains positive into Queensland and may start to improve with the higher rate of job creation over the past year. The Canberra housing market has also been showing tentative signs of growing values along with Hobart however, market conditions have been more volatile from month to month in these areas.

The regions that are likely to underperform are those associated with a higher degree of economic uncertainty. The Darwin and Perth housing markets peaked in late 2014 and both home values and rental rates have fallen over the past year.

The rate of decline may start to ease in these cities; however growth prospects are likely to be at least a year away in these markets. The Adelaide housing market has remained relatively steady over the year, with values virtually unchanged in 2015. However, as the automobile manufacturing sector continues to wind down in the region, coupled with the soft resources sector, the economic outlook for the city isn’t likely to have a positive influence on housing market conditions in the area.

Along with the many other economic variables and factors, the changing regulatory environment is yet another factor likely to influence the market in 2016, particularly proposals released just prior to Christmas by the Basel Committee to levy higher capital on investment loans.

However you see it, 2015 was still an exciting year in the property climate, and signs point to an, even more, interesting yet different 2016. The greater the challenge, the more positively engaged we can become. If you are local or a foreign investor thinking of buying, investing, or building in Australian property, find out what you need to know from your trusted brokers.

Why Is Bangalore a Favorite Realty Destination?

The Bangalore real estate market is one of the most promising real estate markets in the country. IT companies have played a major role in the growth of the real estate market.

The city is one of the most livable cities with good physical and social infrastructure facilities, best educational institutions, famous hospitals, shopping malls, retail outlets, nightlife, etc. The city with all these facilities and attractive climate have attracted a number of people. The residential market has seen excellent growth over time. Many micro markets are known for the residential purpose and few promising and attractive markets include, Sarjapur Road, Whitefield, Outer Ring Road (ORR) and North Bangalore.

Sarjapur Road:

The micro market is located in the South-East of the city. The area is connected to the prime IT hubs like Electronic City, Whitefield and Marathahalli. The area is known for the international schools and reputed colleges. The area has various options for shopping like malls and stand-alone retail outlets of international brands. The micro market enjoys a good hospitality sector and good healthcare facilities. The locality is favorite among the IT/ITes employees as it is well connected to the IT regions. The locality is known for affordable housing. The micro market also has villas and row houses. If you are looking for villas in Bangalore for sale, then you can consider this locality. The locality has good growth potential and is expected to give good returns over the years. Infrastructure projects like the proposed Central Silk Board – Hebbal line metro will benefit this area as this will link the locality. The commercial market in the area is very active and Infosys is coming up with a large campus on Sarjapur Road.

Whitefield:

Surrounded by important micro markets like Mahadevapura, Marathahalli, Bellandur and Krishnaraja Puram. Whitefield is one of the most sought after residential locality after the invention of the IT sector in the area. The locality is seeing demand for the high-end residential apartments and for the villa projects. The area is seeing good demand for the mid-income housing and the demand is mainly driven by the IT population. The micro market enjoys good social infrastructure and the locality is seeing good developments in physical infrastructure as well. This is one of the major reason which is pushing the demand for the luxury projects. Infrastructure developments like the proposed roads, proposed phase II of the metro rail, etc. further boost the realty value of the region. The area is also seeing developments in the commercial market of the locality with the proposed malls like Virginia mall, Embassy mall, etc.

North Bangalore:

The advantage of the locality being the proximity to the International Airport and connectivity is one of the major factors contributing to the growth of the area. The micro market also enjoys a good and planned physical and social infrastructure. These reasons are driving the demand for the high-end residential projects in the area. Home buyers looking for a villa for sale in Bangalore can consider the locality.

The Bangalore realty market is active with the growth of the IT industry and the presence of High Net-Worth Individuals (HNIs). The market is seeing good infrastructure developments and this will further boost the realty scenario of the city.

The Best of Milton Real Estate

How special it feels to be living or moving in to a place which is the fastest growing municipality in the Golden Horseshoe. Fastest growth means more development, better opportunities and modern architecture. You will be able to find various kind of flats, apartments and houses fulfilling all of your needs.

Whether you want compact apartments and houses for your single use or your small family, maybe you want a massive house built with wide rooms and bedrooms for your large family, or maybe you want to go for more luxurious villas… you will get well-built real estate of your choice in Milton.

Population

Milton is the fastest growing municipality according to the census conducted in 2006 and 2011. The census showed that Milton is experiencing approx. 71% rise in population from the year 2001 to 2006 and saw roughly a 56% surge in population from 2006 to 2011. The population of Milton, in 2014, is approximately 100,000, but as it is growing rapidly, its population in 2031 is forecasted to be approx. 220,000.

You will also have no problem communicating with the people in Milton as approximately 70% of the population are native English speakers, according to the census of 2011. The remaining 30% people can also communicate in English as their secondary language.

Residency and Growth

With population, the residential growth also saw a massive increase in Milton. This is also due to the successful completion of the project dubbed “the big pipe”, which was about making a piping structure which will deliver water from Lake Ontario to Milton.

By 2006, Milton had 7 new subdivisions, which included Hawthorne Village. Many new subdivisions from the list are developing, which means that there will be constant development – which is the secret of developed regions.

The council of Milton, in 2014, approved the making of more homes in Milton, which saw a surge of 25,000 residents. Moreover, there are vast numbers of home constructions at any given time in Milton, which is attracting more and more residents. In the numbers of residents, there is a fair amount of people coming from other areas of Ontario too.

Transportation

The town has an easy access to the highway 401 and 407 from Oakville and Hamilton. The town has its carriage railway lines for consignments. It has railway transportation service for passengers from Go transit and Via Rail.

If you take the highway 401, you are only 40 km far from the largest International airport (according to the passenger volume) Toronto Pearson. However, the town has a closer airport in the neighboring Burlington, the Burlington airport. The airport does provide passenger services but the services are not regular.

Why it is Becoming So Popular among New Residents?

1. Many people want to live in Toronto or near it. As Milton is 56 km away from Toronto, it is becoming a favorite choice of many.

2. As it is one of the developed towns out there in Ontario, people here can earn better and can improve their lifestyle.

3. As it is a town, it is getting much attraction from people who don’t like the city thing, but still want to live in an advanced but less ‘noisy’ place.

4. For retired and rich people, this place has its attraction as a suburb where they can live in peace and tranquility.