The markets in some capital cities are set to bottom out, with markets in regional areas already rising, according to PRDNationwide’s Australia Economic Property Report 2019.
Sydney and Melbourne’s property markets are near the end of their downturn, with regional areas in their respective states growing, according to the research.
Queensland’s markets are also near the end of the downturn, with its regional areas close to bottoming out, the research showed.
South Australia and Tasmania’s markets are near their peak, escaping the recent nationwide downturn, according to the research.
It’s a “crucial” time for buyers in capital cities, according to Diaswati Mardiasmo, PRDNationwide national research manager.
“We are in that critical juncture of where we’re at a downswing in most markets at the moment. We have seen a lot of conducive things like APRA lessening lending requirements, the RBA cutting the cash rate twice. … Now is that crucial time to get into the market before it starts to pick up again,” Mardiasmo said.
Markets were expected to rise, but it will be gradual, according to Mardiasmo.
“Having the Reserve Bank of Australia cut cash rates twice in June and July will assist people wanting to get into the market, but at the same time, the only times that they do expansionary monetary policy is if there is an underlying issue in the economy itself. That’s why it will be a gradual lift as opposed to an immediate shoot-up,” she said.
Buyers could still get a bargain in Hobart and Adelaide, compared to Brisbane, Melbourne, and Sydney. Rental yields and vacancy rates in Hobart and Adelaide were looking good, according to Mardiasmo.
Regional markets could also be some of the strongest performers, Mardiasmo said.
“If we base it solely on figures, regional markets are still going fairly strong, and with all of the infrastructure development that has been committed to regional markets, and the fact that regional markets are still more affordable than capital cities. I would definitely expect to see large growth in (regional) markets, whether it’s Victoria, NSW or Queensland,” she said.