This week we’re continuing our chat with Michael Matusik and looking at the property clock, understanding different positions and where the market is sitting in Australia. There are some signs that can tell us which direction the market is going in. We’ll look at supply and demand, employment figures and what people are doing.
We focus on the major markets, capitals and regions in Australian and detached housing specifically, unless otherwise stated.
On the recovery side, we’re looking at detached housing specifically. This phase is favourable to sellers, but buyers need to be careful that they don’t overpay.
- Harvey Bay
- Redcliffe Peninsular
What often happens in the recovery phase and particularly in an upswing phase is that people buy properties, look to renovate them and overcapitalise.
Recovery and upswing phase:
If we went between recovery and upswing, there are quite a few markets in Australia, particularly in South East Queensland positioned here. They are sitting more so at the start of an upswing.
- Brisbane City
- Southern and Western suburbs of Brisbane
- Gold Coast
- Pine Rivers
- Sunshine Coast
Let’s look at an upswing market, this phase is easier for a quicker sell, moving towards a peak, what’s sitting there?
- Eastern suburbs of Brisbane towards the bay, Ipswich, Noosa.
Upswing leading to peak markets?
- Inner Brisbane
- Brisbane northern suburbs are currently at their peak – because they didn’t get as heavily affected by the flood in 2011 and they have a lot more land, leading to a building recovery rather than just buying and selling, which has pushed the cycle faster than southern suburbs.
Peak to downturn market?
Now from a peak to a downturn market – this is a buyers market. Sellers in this market can’t expect a quick sale. First offers are often the best. Here buyers can afford to take their time in deciding. Renovators might need to hold their asset a bit longer.
- Sydney – in a downturn for housing.
- If we were to talk about apartments, Brisbane apartments are in a downturn phase, north and inner city apartments specifically. This is an example of how different product are in different stages of the cycle.
Downturn to stagnation?
Stagnation is a balanced market where you can buy and sell at a similar value. Buying decisions need to be made quickly.
- Gladstone, Rockhampton and Townsville
- Trough – Bundaberg and Whitsundays
The Rentvesting Podcast, available on iTunes, was created by Red & Co’s Jayden Vecchio and expert financial planner Louis Strange. Together, Jayden and Louis unpack the facts behind the property market, explain what’s really going on & where the market is heading. They believe in challenging the status quo and want to get out there to educate absolutely anyone looking to enter the property market.