Property investors not out of the woods
Pete paints a detailed picture of the current landscape of the property market following the Reserve Bank of Australia’s policy decision. Presenting his insights on the impact on the property market, Pete highlights the policy’s likely implication for monetary tightening that could come via the fixed rate mortgage reset. He signals the possibility of recessionary risks and a sharper downturn than expected.
Offering his perspective on recent property trends, Pete talks about the tapering down of house price increases and the surge in properties being bought and sold within 24 months – the highest in a decade. He also reports on the selling off of properties by cash flow or portfolio investors. On overseas investment, Pete notes the departure of Chinese developers from Australia, which he links to China’s housing market issues and the Evergrande debacle.
Discussing the fallout from costlier construction pricing, Pete sees a premium being attached to renovated houses, which are becoming more popular than undertaking renovating projects. As for the property outlook, Pete sees potential for modest growth in capital cities over the rest of the year, with investor activity spotted in sectors like the industrial space and healthcare centres. He ends by signalling nervousness in office space, brought about by working from home and decentralisation trends.