Hobart to remain the property star in 2018: Mozo's Steve Jovcevski
Mozo property expert Steve Jovcevski expects prices to further cool in the major housing market of Sydney, while Melbourne will enjoy a spike in property values.
Brisbane houses should slowly increase while Hobart will continue to be the star performer.
Sydney – property market decrease of -5%
The Sydney housing market plateaued in 2017 and will drop slightly over 2018, but we’re unlikely to see a dramatic bubble burst. Signs pointing to a slower market include lower clearance rates and higher than average housing supply. Clearance rates could continue to be low in Sydney due to rampant under-reporting of sale prices by agents. It is possible that actual clearance rates are even lower than reported. The market is expected to pick up in Autumn but the Spring season, typically a boom period for the Sydney property market, will be tough in 2018. First home buyer demand will be stronger, due to lower competition and ongoing low rates.
Melbourne – property market increase of 5-7%
Melbourne will continue to be a first home buyer’s market with more affordable housing in comparison to Sydney. Melbourne is experiencing strong population growth and while the market will continue to grow, it will slow compared to the 10% growth experienced in 2017. It is anticipated that Melbourne clearance rates will also drop from 70% to 60% due to the slowing of first home buyer activity and a drop in pent-up demand. Apartment markets may struggle due to oversupply issues in some inner-city locations.
Perth – property market increase of 2-4%
The Perth housing market has stabilised in the last quarter although the market experienced a slight housing price drop over the last year. The Perth housing market has struggled over the past few years and is now set to enjoy a small amount of growth which will continue to climb. The city boasts an affordable first home price point compared to other major metropolitan areas in Australia and is experiencing steady population growth. The local economy is slowly strengthening after overcoming the mining collapse and now enjoys a more secure local economy.
Canberra – property market increase of 7%
Low vacancy rates continue to support the Canberra property market with an adequate supply of interstate investors seeking good yield. Demand in the first buyer space continues and the local economy remains consistently strong. Migration to Canberra also continues as Australians seek out the capitals excellent job market, lifestyle opportunities and housing affordability.
Brisbane – property market increase of 5%
Brisbane has experienced steady population grown due to the affordable lifestyle it offers. Many Australians are migrating to Brisbane from more expensive city centres due to housing affordability and a stable local market. 2017 saw a steady increase of 4-5% and it is predicted this slow and steady rise will continue for years to come. Apartment markets may struggle compared to houses due to an oversupply in some areas.
Hobart – property market increase of 10%
Hobart posted a whopping 12% growth in the past year, and is expected to experience similar growth in 2018. Compared to other Australian metropolitan centres, Tasmania boasts some of the country’s most affordable housing. With close proximity to Melbourne, low vacancy rates and consistently high rental demand it is an excellent investment prospect. The local economy continues to improve and lifestyle migration is expected to be a major factor in driving up house prices.
Adelaide – property market increase of 3-4%
Slow is steady is the track record for Adelaide's housing market and this continues in 2018. The ideal market for investors, housing prices are not prone to sharp price rises and dips. In the last year, Adelaide enjoyed a 3-4% price increase and this is expected for 2018. An increase in new apartments may increase house prices slightly, but generally, Adelaide will enjoy slow and consistent property growth.