The investment outlook for the Australian property market should remain mostly positive in 2016... Sydney house price growth in world's top-five...
Bubble talk unfounded says PCA
The investment outlook for the Australian property market should remain mostly positive in 2016, despite talk of busts and bubbles.
According to the latest ANZ Property Council Survey, the national confidence index for Australian real estate remained at 131 at the end of the March quarter, which indicates a positive outlook for the market.
The index has now remained unchanged for 12 months and Property Council of Australia of chief executive Ken Morrison said that shows any talk of a collapse in the property market is unfounded.
“In recent times there has been some media commentary about ‘property bubbles’, but the data does not support these claims. [The] Property industry is neither going through boom nor bust – instead, it is steadily meeting the continued strong demand for housing in Australia,” Morrison said.
“We are seeing confidence underpinned by the continued strong economic performance of our largest states – NSW and Victoria. This is a positive and steady outlook – that reflects the steadiness of the economy. Australia is witnessing steady employment growth, low and stable interest rates, stable rents and house prices,” he said.
Sydney house price growth in world's top-five
Sydney’s recent run of strong house price growth has pushed the city’s property market towards the top of the global ladder.
Global real estate services firm Knight Frank claims in the 12 months from September 2014, house prices in Sydney grew 19.9%, good for fourth position on their Global Cities House Price Index.
According to the index, which tracks house price growth in 165 cities across the globe, the Chinese city of Shenzhen was home to the world’s strongest house price growth in the 12-month period, with prices rising 47.5%.
Kate Everett-Allen from Knight Frank’s international residential research department said Shenzhen rose to the top of index thanks to moves by the Chinese government.
“In 2015 first-tier cities in China saw strong demand on the back of the relaxation of policy restrictions which boosted market performance,” Everett-Allen said.
“Shenzhen is fast becoming one of China’s key technology hubs, its population of 10 million has an average age of 30,” she said.
“Our biggest success has been cultural – getting everyone on the same page. We’ve spent six years on staff education, on being authentic … we’ve got a culture where people are comfortable saying what they think, and their ability to work in a team has improved by leaps and bounds.”
Daniel Di Conza, Acceptance Finance, Top 10 Independent Brokerages 2015
