The observable media focus on Sydney and Melbourne real estate markets is doing property investors a disservice, says RE/MAX Australia Managing Director, Michael Davoren
“Major media stories, especially in the national media, focus on Sydney and Melbourne, where there’s bound to be turbulence in markets that are coming off eye-watering highs.
‘The reality is that Sydney’s property market peaked in mid-2017 and Melbourne in about November that year. Sydney home prices have come down around between five and a half and six per cent over the last year, and the best you can say about Melbourne is that it’s experiencing a soft landing after five years of strong price growth.”
Mr Davoren said much in the media was the talk of forecasters, but forecasters can get it a bit wrong or spectacularly wrong.
“Unfortunately the media can give these predictions credibility, and we been subjected to their ‘advice’ time and time again.”
However, it is the bias towards reporting on Sydney and Melbourne markets, and the way these markets are covered, that most concerns Mr Davoren.
“It is of grave concern that property investors are not receiving the full or accurate picture, and that people are missing potential investment opportunity in other markets – including interstate, and especially South East Queensland.
“Queensland is leading the nation for interstate migration,” he said.
ABS stats had 24,000 new Queensland residents from people moving interstate for the year to March.
“Queensland is through the worst of its mining construction downturn, gas exports are performing strongly and tourists continue to flock to the State. Job growth is quite strong, with nearly 130,000 net new jobs created in the past year alone, partly due to almost $30 billion worth of projects under construction.
“The number of overseas migrants also has risen.
“And it is not only the number of incomers that is significant, the fact is that cashed-up people coming out of the southern markets are looking for somewhere to invest.”
Mr Davoren sees Brisbane property having good growth potential after the past few years of slow growth.
“Historically, Brisbane price growth has been high when interstate migration into Queensland has been high – though this hasn’t been seen since pre-2015. Brisbane may prove to have the greatest potential over the next three or four years, and housing is still relatively affordable.”
He remains wary of media stories misleading investors.
“I do get concerned about the hype of some media. Over the past two or three decades, the Australian market has faced everything from recessions and GFC to natural disasters. I recall there was even fear of plummeting prices after the Olympic Games.
“But, as I repeatedly say, Australia is not one market. It may be fair to say a Sydney pretty worth $300,000 in 2000 is now worth over $1mil. That’s not happening in every suburb!
“Sydney and Melbourne have dragged Australian house prices down by close to three per cent, with prices falling for 12 consecutive months since they peaked last year.
“I would like to see the media take its focus off those two markets alone,” he said.
Michael Davoren, Managing Director, RE/MAX Australia & New Zealand – M. 0410 571 571
Lyn Cox, RE/MAX Public Relations – M. 0418 793 096
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