Update on the Housing Market in New South Wales and Queensland
Statistics recently released from a number of sources, reveal that there is a lot to be positive about in the current housing market. Perry Homes are encouraged by the buoyant conditions which we are currently experiencing in the regional areas of both New South Wales and Queensland.
Contributing to the positivity that buyers are feeling about the housing market currently are:
Low Interest Rates
One of the most significant reasons that the housing market is in such good shape, is the current low interest rate. At the moment, the official cash rate set by the Reserve Bank is 1.5%. There was no change at all to interest rates recorded in 2017. The last time the Reserve Bank altered the official interest rate was way back in August 2016. At that time interest rates dropped by .25%. As a result, property buyers are reaping the benefits of the longest period of static interest rates, ever recorded.
If we had a crystal ball, it would be easier to predict where interest rates will go this year. Some economists are suggesting that we won’t see a rise in interest rates until at least the first half of 2019. However, there are others who think there may be a just a slight rise at the end of this year. It appears that the economists are about 50/50 divided over this. Either way, we are currently enjoying the lowest cash rate since the late 1950’s. This is certainly great news for those wanting to buy a new home.
First Home Buyers
Responding to more stable housing market conditions, the First Home Buyer sector has really bounced back. More than 94,000 homes were sold to this housing market segment across Australia in the last twelve months. This represents an increase of 5.6% over the same period the year before.
According to the Real Estate Institute of Australia (REIA) First Home Buyers represented around 18% of the total owner-occupied housing finance. This is the highest it has been since 2012 and is certainly encouraging news for the housing market.
The significant growth in the First Home Buyer housing market, can be partly explained by the incentives offered by the state governments of New South Wales and Queensland.
In New South Wales, this incentive is known as The First Home Owner Grant (New Homes). Presently the maximum grant provided to purchasers of new homes in this state is $10,000. To qualify for this grant, buyers must have not owned a home before and intend to buy or build a brand new home.
To help and encourage eligible first home buyers to purchase or build a new home in Queensland, the Labour Palaszczuk government has been even more generous. Originally offering $15,000 as the Queensland First Home Owners’ Grant they have recently announced that they will extend the Boost of an additional $5,000 until 30th June 2018. That is a whopping $20,000, which is a really great incentive, for those wanting to get a start in the property market.
The Housing Market by State:
New South Wales
Property values in the metropolitan areas of NSW, increased on average, a little over 5% in 2017. That said, there are many different types of housing markets with location, market price segment and type of property, all being affected differently.
Driving the positivity and growth of the housing market in NSW, is the strong economy, increase in population and investment from overseas buyers. It is predicted that we may see prices stabilise, since the price acceleration over the previous five years. However, significant growth in employment and a continual increase in migration will continue to drive the housing market.
New home builder Perry Homes, believes that the regional areas of New South Wales will continue to remain strong. There has been evidence of an increase in sales across most market segments and especially first home buyers.
New home consultants in Newcastle, New England, Mid North Coast and Northern Rivers have all recorded a significant increase in visitors to their display homes. These buyers are commenting, that they intend to build a new home within three to six months. The most notable reason for this is because of the current favourable market conditions.
With property prices in the Sunshine State significantly lower than metropolitan New South Wales, we continue to see interstate migration, as a driving factor in the Queensland housing market. The Labour Government has instigated a number of impressive infrastructure projects, which will continue to underpin strong population growth.
Perry Homes expects to see a continuation of solid growth through 2018 on the Sunshine Coast. A reason for this being, regional governments are driving significant capital investment. Low unemployment, and above average population growth, will continue to drive the housing market. Major land releases including the Harmony Estate in Palmview will provide an opportunity for new home buyers to purchase land in this area.
As a result of the strong housing market seen in this region, new home builder Perry Homes have recently opened two new display homes on the Sunshine Coast. These impressive display homes, showcase the latest innovations in housing and design and are the epitome of modern living.« Back to Latest News / Awards