The real estate industry is looking buoyant for 2015. Current low interest rates (with further cuts predicted) and soaring property prices are making property an attractive investment in the New Year.

CoreLogic RP Data’s daily home value index shows an 8.4 per cent rise in home growth this year across the major capital cities.

The fastest riser was Sydney, where home values rode a rocket with 12.7 per cent growth. Melbourne followed with a dazzling 7.8 per cent. Respectable gains were made by Brisbane and the Gold Coast at 5.3 per cent and Adelaide with 4.7 per cent. Perth trailed with just 1.4 per cent.

Property trusts, however, exploded in 2014, with some returning growth figures in excess of 20 per cent!

Experts are predicting 2015 to carry on the upward ride.

Louis Christopher, managing director of  SQM Research, said, “Basically the money markets think it’s a dead certainty rates are going to be cut by April 2015, with the chances increasing of another rate cut in June.

“If such rate cuts happen, housing markets will be boosted throughout the course of the calendar year.”

Craig James, chief economist with CommSec, said new housing was starting to rise. This increasing supply would lead to softer growth in housing prices, but an actual slump was unlikely.

Tim Lawless, head of research at CoreLogic RP Data, believed property growth would soften in 2015. He predicted Brisbane property prices to outshine all others. Adelaide and Hobart would post only modest growth. And Perth was likely to post potential falls in home value.

About The Author

Someone you can depend on to respect you and care for your dog. Let me help you give your dog the life it deserves.

Leave a Reply

Your email address will not be published.