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

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.