Property Market Essentials - September 2019
This Month in Review
Spring is here, a time of year when the real estate market traditionally heats up along with the weather.
Two interest rate cuts by the Reserve Bank during the winter months seem to be having an effect on the market already. CoreLogic data show that combined house prices in Australia’s five largest capital cities (Sydney, Melbourne, Brisbane, Perth and Adelaide) have increased by 0.75% over the last three months. Many analysts are tipping interest rates to fall even further before the end of the year.
The low interest rate environment and increasing uncertainty in the share market are combining to make the Australian property sector more attractive for investors. Global share markets (including Australia’s) are increasingly being spooked by fears of a major economic recession being caused by the escalating trade war between the US and China.
Investors typically turn to the property sector when there is an economic downturn because share prices and dividends tend to fall during that period. In potentially preemptive fashion, the value of shares on the Australian share market fell by an average of 6% over the past month after hitting highs of 6,768 on the ASX All Ords, not seen since 2007.
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The Market Essentials Report is compiled by Buyside on behalf of Loanscape. Founded by Josh Masters, Buyside are registered buyer's agents with on the ground expertise in the Sydney and Brisbane property markets.
Disclaimer: This article is intended to provide general news and information only. While every care has been taken to ensure the accuracy of the information it contains, neither Loanscape nor its employees can be held liable for any inaccuracies, errors or omission. All information is current as at publication release and the publisher takes no responsibility for any factors that may change thereafter. Readers are advised to contact their financial adviser, broker or accountant before making any investment decisions and should not rely on this article as a substitute for professional advice.