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After a turbulent journey in the property market, John McGrath predicts a brighter future.
Mr McGrath highlights some of the challenges the industry has recently faced in his message in McGrath Report 2020.
The McGrath founder linked record-low listings to transition costs and world economic uncertainty. However, with low interest rates, he predicts a revitalisation in property.
“Property becomes the number one investment choice,” Mr McGrath said. “Real estate is far more attractive when you’re getting close to zero for lazy cash in the bank.
“The days of 5 per cent or 6 per cent returns on deposits are long behind us. The closest asset to cash in the bank, in most people’s minds, is bricks and mortar.”
Investors who left the market a couple of years ago are expected to return to it from next year, he said.
Additionally, he predicts overseas buyers will return, and regional markets will grow in popularity thanks to “high metropolitan prices, Baby Boomer sea and treechangers, and people being able to work virtually from anywhere”.
When it comes to property prices, they will remain stable along the east coast, and good news will come for Darwin and Perth by 2021, Mr McGrath said.
Although listings will remain tight in the short term, he believes they will return to more normal levels beyond 12 months.
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