As we dust ourselves off from the summer holiday period, what can we expect in the property market for 2015?
Interest rates are at record lows and the economy has shifted such that after a lengthy period of stability in rates there’s now forecasts of further cuts in the coming months.
Real estate is set to be an attractive investment as a result.
SQM Research managing director Louis Christopher told News.com he expects 2015 to be a very positive year for residential property owners.
“Basically the money markets think it’s a dead certainty rates are going to be cut by April 2015, with the chances increasing of another rate cut in June,” he said.
“If such rates cuts happen, housing markets will be boosted throughout the course of the calendar year.”
Tim Lawless from CoreLogic RP Data said on News.com that he expects the two leading capital cities of Sydney and Melbourne to experience softening growth, he predicts Brisbane to be the best performed capital city in Australia, he thinks Adelaide and Hobart will experience modest growth and he said Perth prices could potentially fall.
It should also be a good year for commercial property with a report from Colliers International that forecasts more growth from improving demand from commercial tenants.
Collier International’s Australia and New Zealand CEO John Kenny gave News.com his thoughts on the healthy confidence in commercial property investment heading into the new year.
“The majority of sales are now to Australian investors. This is not surprising given that Australian investors are now recognised as the most confident in the world,” he said.
With similar positive sentiments, Tim Nation from AMP Capital told News.com that 2015 should be a good year for the commercial property market.
“The fundamentals for office and retail markets in Australia are looking more positive than 12 months ago, with the Sydney and Melbourne office markets having seemingly bottomed and green shoots now evident, and retail sales improving nationally,” he said.
“For both offices and shopping centres, creating places that people want to visit will be increasingly important for the real estate market in 2015 and beyond.”