Following on from my blog earlier this week where I talked about Australians' confidence increasing when it comes to property, more information has come to light which shows Australia's market is resilient to tough times. Not surprising really I like to think, when you consider how hardy we Aussies are generally!
Last week, information put out by RP Data showed that we've had a relatively soft landing as far as property markets in the current economic conditions go. This can largely be attributed to a significant undersupply of housing across the nation's capital cities, coupled with record population growth which is forecast to remain strong long term.
Unlike the other countries to which our property market is often compared, our residential property market has also been protected by Australia's very strong banking system. Although the financial sector is easy to criticise when you're living here, our 'big four' banks all have the AAA rating - no mean feat when only 13 banks around the world are currently rated AAA.
It is also being predicted that the investment property market will continue to pick up this year, something Century 21 has already begun to see happening in markets around the country. Many investors holding off on property purchases are beginning to take advantage of the strong yields currently available, and the proven lack of volatility evident in the residential property sector. Currently investors are starting to compete with first home buyers in the lower priced segments of the market where the yields tend to be higher and the risks lower. The continuation of this trend is likely to see investors entering the market more rapidly towards the end of this year.
And if you're not one of the people who have taken a hit at the hands of the economy, there is some great news when it comes to holiday properties. With tourism numbers projected to continue falling this year, coastal markets are suffering – which means many holiday rental homes are too. Many of the owners of these holiday home owners have been forced to place their weekenders on the market, and there is a great deal of stock available for sale in these idyllic locations. Like I have been saying, if you're in a position to buy, now is a great time to be doing so!