What will we be reading relating to property this year?
What mega trends will dominate our discussions regarding the property markets?
What markets are going to shine, and which ones will wane?
Of course everyone has their own ideas on a topic like this, but in this short (20 minute) webcast I’m going to suggestion what I think will be the significant influences on our property markets in 2018 and some tends that are likely to emerge.
What drives property price growth?
We have to look at 3 levels : MACRO – REGIONAL – LOCAL
- At the Macro level, prices influenced by wider factors – interest rates, liquidity, the economy, wages, confidence, government policy, exchange rates, overseas events
- Regionally dwelling prices are influenced by employment, wages, supply and demand. And some infrastructure projects
- Locally – it’s all about supply and demand – measuring the amount of stock for sale versus the number of sales during the same period.
The 5 P’s drive property price growth.
- People – including population growth and household formation – also demographics
People create housing demand, but although house price rises are caused by an increase in buyer demand, property buyers come in many different shapes and sizes
- Purchasing Power = Affordability – the relationship between housing prices, interest rates and wages.
It’s the cost to the owner or investor to retain and enjoy a property. When prices, interest rates and wages reach a ceiling in a particular area, residents often realise they can have a better lifestyle elsewhere.
- Position – location will do the heavy lifting for your property portfoli
- Property – the right property – an investment grade property
- Places – basically supply and demand
People create housing demand. Purchasing power transforms demand into buyers. Property values rise when there is a shortage of places.
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