In recent times it has been well reported across mainstream media of the slowing in Australia’s two hottest property markets; Melbourne and Sydney.
Have we reached a peak in the market?
Is the boom about to end?
According to Core Logic RP Data Daily Home Value Index, Sydney experienced a gain in property values of -0.04% across all dwellings in the month of April 2017, while Melbourne only experienced a small gain of 0.50% for all dwellings.
While I generally won’t make comments on a single months’ performance with relation to property values, it is an interesting result to look at more deeply. If we take a look at dwelling types, the negative results in Sydney have in fact been driven predominately by units dropping by more than 1% (-1.19%). This is similar to the Melbourne market, which experienced a -0.19% drop in unit values in April 2017, according to RP Data.
While the mainstream media reports primarily on our State capitals when feeding us information about the housing market, Core Logic reports to test over 3,800 markets across the country for performance.
Did you know that the suburb of Walkerville in South Australia grew by 47.76%* in the last 12 months?
Or that Manor Lakes in Victoria grew by 43.10%* in the last 12 months?
Goomeri in Queensland grew by 44.23%* in the last 12 months.
Please note – I am not for one second suggesting that you should be purchasing an investment property in any of these suburbs!
In fact if we look a little closer at the data available, Goomeri has a population of only 800 people, and performs quite poorly on the Demand to Supply Ratio according to our Equidel Property Investment Matrix. However; as investors, it is of utmost importance that we ensure we are educated on what is out there in the property market before making a purchasing decision.
This does not only relate to the location of the property, but also things like the type of dwelling (as shown in the results in Sydney and Melbourne!), local employment opportunities and more. All of these things can affect the outcome of the performance of a particular property in your property investment portfolio.
Our recommendation is to ensure you’re well-researched, and are then informed to make wise decisions.
“In taking risks you can win and be happy, or lose and become wise”
(Unknown)
Originally Posted: 15 May 2017.
