Property investors are more optimistic about housing prices throughout 2020 according to ME Bank’s latest Property Sentiment Report. The series of positive market conditions resulted in investors revising up price expectations for 2020.
According to 2020’s first-quarter property sentiment report, 52 per cent investors revised up price expectations for the next 12 months. The same goes for first home buyers with 56 per cent and owner-occupiers with 57 per cent.
Overall, 45 per cent of respondents are feeling positive about the current property market. This is mainly because of consistent developments including federal election results in 2019, loosened lending restrictions implemented by APRA and record-low cash rate of 0.75 per cent since October 2019.
House price expectations across all states are looking good especially in Queensland (57 per cent ) and Victoria 67 per cent. The Sunshine State is gaining a lot of momentum from the South East region with new infrastructure projects being completed or getting the green light.
SEQ Major Projects
The University of the Sunshine Coast just opened its Moreton Bay campus in Petrie. More than 1,000 students are now starting class. In 2030, the campus will house more than 10,000 students and offer more than 100 degrees.
In the Gold Coast, there are several major projects underway. One is the $2.5 million Gold Coast Dive Attraction for economic development and tourism. Then, there is the Gravity Sewer Relining 2019 – 2021.
The entire city of Logan will soon benefit from a world-class health care facility with $460 million worth of upgrades coming to the Logan Hospital. The Loganlea Station will also be relocated near the hospital to better serve the community with access to quality public transportation.
In Brisbane, the $750 million worth Albion Exchange project will improve North Brisbane’s congestion. The Victoria Park transformation tipped to compete with New York’s central park just got the green light.
Strong Market Conditions
The nationwide property market continues to experience positive developments one after another. The Australian Bureau of Statistics recorded a 4.4 per cent increase in new loan commitments. The government’s First Home Loan Deposit Scheme or FHLDS can and will help more first home buyers in the coming months. The cash rate might reduce in April recording the first cut for 2020. The employment market is also picking up with RBA’s February report showing a lowered unemployment rate.
Smart investors continue to revise their price expectations higher and are seeing stronger capital gains in selected property markets, mainly in the SEQ. Gallery Group is working on a number of residential developments in the majour cities in SEQ are we are looking for investors to engage with. Contact us today.