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Market forecast: Is now the time to invest?

Posted 8 August 2019

It has been a big few months for Australia’s property market, with a Federal Election, interest rates cuts, Australian Prudential Regulation Authority (APRA) relaxing lending criteria and public hearsay all impacting on market confidence.

So, what should we expect? Is now the time to invest?
Early reports that the property market is rebounding does seem to be correct, with prices bottoming out this year and a slow recovery starting to emerge. With this in mind, 2020 should be a more positive year and the market should continue to build.

With blue chip suburbs starting to rebound now, we are seeing two markets moving in WA at present and it all comes down to confidence and growth for the future

There are those who see the APRA changes, interest rate cuts and signs of soft recovery as real confidence-boosters for the market. Then there are those who are more risk adverse, who see sluggish wage growth and stagnant retail sector as signs that the market is currently too unstable to invest.

This ‘market within a market’ is not uncommon, however we believe that there is currently real potential in Perth and are seeing good volumes of development enquiry.

The lead indicators are a testament that the rest of the market is due to follow and that these green shoots of recovery will only continue to grow stronger.

Investors should expect to see more activity in the early months of 2020. Those who feel confident in the market now should look for great sites that are currently under-valued and are in good locations, that can hold their own in terms of yields.

Investors should look for small to mid-scale development projects as they have the greatest potential in terms of recovery prices.

As always, it is important to keep a level head and focus on the opportunities that are out there, because no matter the market, there are always opportunities waiting for those who can find them.

Article written by our Senior Development Consultant, Adrian Johnson. 

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