What’s in Store for the Property Market in 2014?

December 29th, 2013

Property experts predict what’s in store for the property market in 2014 for Property Observer.

Terry Ryder

  • 5-10% growth in Sydney and Melbourne, with an even distribution in the middle and outer suburbs
  • Over 10% growth in Brisbane
  • Perth will see growth in affordable areas
  • Moderate growth in Darwin
  • 5% growth in Adelaide
  • A recessional Hobart needs input from the government for maximising opportunities
  • Canberra will struggle due to thousands of job cuts and an oversupply of apartments
  • Interest rates will increase
  • Property prices will increase by 7%
  • Regional areas will show growth
  • Bad investment areas are those with an oversupply of apartments, particularly in the cities.

Peter Wargent

  • Interest rates will decrease
  • Regarding price growth, the underperformers are Canberra (-4%), Hobart (2%), Perth (3%) and Adelaide (3%)
  • The outperformers are Brisbane (5%), Melbourne (5%) and Sydney (9%), but Brisbane could outperform Sydney.

Monique Sasson

  • Melbourne will perform better due to a housing recovery this year
  • Autumn will see many weekend auctions, with all supplies used up and 70% clearance rates
  • Auction season might start earlier and there could be many private treaty sales in January
  • If interest rates remain steady, Melbourne’s price growth could reach double digits, but if it gets cut by 25-50 basis points, it will reduce capital growth
  • Cutting interest rates to 2.25% or less could increase capital growth elsewhere, but this leaves the RBA vulnerable to setbacks.

Catherine Cashmore

  • Sydney will perform well with overseas buyers, SMSF property investment, buyers wanting higher returns, and supply shortage
  • Interest rates will increase
  • Brisbane will see high growth
  • Sydney and Melbourne’s first home buyers will need to find affordable property in the middle or outer suburbs.

Robert Larocca

  • Melbourne’s house prices might peak from February-April
  • The property market will still be driven by interest rates, but spending from and the number of first home buyers remains low
  • Interest rates will stay low, along with good house prices
  • Growth will be ongoing and sustainable, but not fast.