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One data analytics expert has revealed his property market predictions for the remainder of 2016.
According to CoreLogic RP Data's executive general manager – property and partnerships, Greg Dickason, the Australian property market is currently in “a pretty healthy position nationwide” and this looks set to remain so.
“The market is looking a bit softer than the euphoria of last year, but it’s still looking pretty good,” Mr Dickason said.
“We think the market is still in a pretty strong position and in fact, there’s probably less of the irrational exuberance and more of the sustainable volumes than we were having last year, which is a good thing.”
However, Mr Dickason said he remains a little concerned about rental yields getting compressed.
“We are seeing that a lot of the rental yields have been dropping steadily across most of the major cities and that’s obviously a concern in terms of the sustainability of house price growth because one of the key factors is ‘Are you getting the right rental returns?' – especially if you’re an investor,” he said.
“But what is quite encouraging is that there’s a lot more owner-occupiers back in the market. The latest stats out of the RBA showed that there are some good owner-occupier volumes coming back.”
Mr Dickason believes property is going to “be a lot more interesting market this year”.
“Are we going to see interest rate changes? Are we going to see the banks change interest rates even though the RBA doesn’t? I think that’s quite possible that you might see out-of-cycle interest rates from the banks but I think you’ll also see the banks chasing quality,” he said.
“Quality is a low-to-value ratio loan to an owner-occupier – that’s going to be the prize – so if you’re one of those people, you’re most likely to be approved and will get the best interest rates.”
ABOUT THE AUTHOR
Emma Ryan
Emma Ryan is the deputy head of editorial at Momentum Media.
Emma has worked for Momentum Media since 2015, and has since been responsible for breaking some of the biggest stories in corporate Australia, including across the legal, mortgages, real estate and wealth industries. In addition, Emma has launched several additional sub-brands and events, driven by a passion to deliver quality and timely content to audiences through multiple platforms.
Email Emma on: Emma.Ryan@momentummedia.
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