The Property Investment Market – Continuing to Surprise in 2010
The property market has been nothing short of a surprise packet over the past twelve months. Whilst the world has expereienced one difficulty after another economically the Australian economy has gone from strength to strength.
Whilst the global western housing market has experienced declines in excess of 40% in places such as the UK/Europe and the US – the Australian market has experienced an increase?
What is it about the Australian market that is so resilient at a time like this and are the indicators still good?
We refer now to an article issued by leading Australian Real Estate personality John McGrath – CEO of McGrath Estate Agents. In this article he outlines a number of interesting factors in the Australian market. We beleive this is an excellent summary of the Australian property market.
A strong Australian economy is the driving force according to McGrath. Most Australians have been relatively unaffected by the GFC and people have had their optimism in the property market restored very quickly.
Interest rates are still low. Even with the rise in rates experienced in the past four months, interest rates are still historically low.
Australia’s population is still growing rapidly. Nationwide – demand for housing dramatically outstrips supply and does not look like abating for some time yet. In cities such as Sydney this is even more pronounced as the lag between demand and the supply of new dwellings will take some time to filter through the market.
With the GFC people did bunker down somewhat and the result as a drop in the supply of houses for sale – 34% down on 2007, the restoration of confidence is bound to bring restoration in listing levels well into 2010.
I believe there are still plenty of good opportunities in the market for property investors both for rental yields and capital growth.
At Portfolios we have launched a property division which has the sole purpose of finding our clients premium investment opportunities. We select our properties based on strict criteria (see criteria article) and offer them to our clients.

The Property Investment Market

Continuing to Surprise in 2010

The property market has been nothing short of a surprise packet over the past twelve months. Whilst the world has experienced one difficulty after another economically the Australian economy has gone from strength to strength.

Whilst the global western housing market has experienced declines in excess of 40% in places such as the UK/Europe and the US – the Australian market has experienced an increase?

What is it about the Australian market that is so resilient at a time like this and are the indicators still good?

We refer now to an article issued by leading Australian Real Estate personality John McGrath – CEO of McGrath Estate Agents. In this article he outlines a number of interesting factors in the Australian market. We beleive this is an excellent summary of the Australian property market.

A strong Australian economy is the driving force according to McGrath. Most Australians have been relatively unaffected by the GFC and people have had their optimism in the property market restored very quickly.

Interest rates are still low. Even with the rise in rates experienced in the past four months, interest rates are still historically low.

Australia’s population is still growing rapidly. Nationwide – demand for housing dramatically outstrips supply and does not look like abating for some time yet. In cities such as Sydney this is even more pronounced as the lag between demand and the supply of new dwellings will take some time to filter through the market.

With the GFC people did bunker down somewhat and the result as a drop in the supply of houses for sale – 34% down on 2007, the restoration of confidence is bound to bring restoration in listing levels well into 2010.

I believe there are still plenty of good opportunities in the market for property investors both for rental yields and capital growth.

At Portfolios we have launched a property division which has the sole purpose of finding our clients premium investment opportunities. We select our properties based on strict criteria (see criteria article) and offer them to our clients.

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