The property growth cycle has started with demand surging, house prices on the rise and overseas buyers on their way, according to John McGrath, chief executive officer of McGrath Estate Agents.
Data from the McGrath Report, released this week, highlights several standout factors helping to buoy the market including increased property investment through self-managed super funds (SMSFs), significant infrastructure growth, low interest rates and an influx of Chinese investors.
SMSFs have increased their investment into residential property by 10.4 per cent in the past year, according to the report.
In addition, major infrastructure projects such as the Legacy Way Motorway near Toowong, the Brisbane CBD redevelopment which will include a 43-storey tower, the Southport Hospital and light rail, the Gold Coast 2018 Commonwealth Games and the Sunshine Coast University Hospital are all expected to improve values and demands in these areas.
McGrath says he expects interest rates to bottom for the remainder of the 2013 but start to rise in the second half of 2014.
As a result, he predicts 2014 will see continued residential property recovery Australia-wide, with several cities surging in demand and prices, including Brisbane. Sydney is expected to lead the way but southeast Queensland will likely show the overall strongest growth market in Australia over the next three years, according to the report.
McGrath sees the housing market on the Gold Coast improving after being oversold and finally starting to recover from the global financial crisis. This is where retirees and empty nesters will come to make the most of still low prices and to enjoy a sea change.
*Article Sourced from The Australian Property Investor*