On the up, but cautiously!

Geoff Grover – Sunshine Coast Property Talk – June 2013




There is no doubt the housing market displays growing optimism, but media hype & reporting following the release of housing statistics & interest rate announcements can be over the top.

It is the long term that really determines housing trends, such as a moving annual average that smoothes out seasonal influences.

Based on this, what is the direction?
The REIQ report on statistics for the 12 months to March 2013 advises “ Queensland`s market was improving in a sustainable way, our property market continues to record healthier results with positive yearly figures”.

10 of the 12 major Qld regions posted a steady or better median price result over the year.

Michael Matusik confirms the Australian situation is improving, but expresses caution:

* even though interest rates are at 50 year lows, more cuts to balance out the gov`t fiscal consolidation are needed. There is general expectation these are on the way, sooner rather than later.

* housing starts need to rise as these create lots of new jobs and momentum, but we face a structural problem because of the very high taxes and charges on new property.

The HIA estimates these to be 36% of the purchase price of a new home in Brisbane & this issue is simply not being addressed.

*First home buyer numbers are down 30% nationally dollar volume, & in Qld & NSW dramatically down - the re-focusing of grants from second-hand property to a $15,000 grant for building a new property has been a dismal failure.

What about the Sunshine Coast?

Very well positioned. The key is employment growth with major infra-structure projects such as the Horton Park CBD development, the Sippy Downs Hospital complex & the huge airport upgrade, plus others.

This growing activity will create a very strong second home buyers market looking for established homes.

You can never rule out any demographic, but it is owner-occupiers who are leading the way & expected to continue doing so.

Investor numbers are slowly growing, but First Home Buyers will continue to lag way behind until the gov`t addresses the structural issues highlighted



Geoff Grover
Coolum Beach Realty
Mobile 0414 337 402
geoff@coolumbeachrealty.com.au
www.geoffgrover.com.au