Brisbane set to be the big story in 2015
This year has been a year of huge growth for Sydney’s property market but in 2015 the focus will be on Brisbane. There’s been a lot of interest in Queensland recently with investors finding they can get more for their money and higher rental yields than in NSW. New forecasts from CoreLogic RP Data show that growth in Brisbane should outperform the average for the capital cities in the next 12 months while Sydney will return to more moderate price rises after a period of high growth. Melbourne will see lower prices as new supply becomes available while Adelaide and Hobart are set for a moderate rise. The slower economy in WA and a lot of new home construction could see lower prices in Perth with Canberra and Darwin also likely to see flat or lower prices. Outside of the capitals CoreLogic RP Data expects any growth to be fairly limited.
Home renovations expected to surge
More Australian homeowners are renovating their existing homes according to a brand new report. The Housing Industry Association has released the inaugural edition of Renovations Roundup, a comprehensive insight into the nation’s home renovations sector. It shows that after a period of decline, largely due to uncertainty in the global economy, renovations are making a comeback. HIA senior economist Shane Garrett says: “Latest indications suggest that the market is starting to turn for the better, with renovators modestly optimistic for the year ahead. Activity is benefiting from a prolonged period of very low interest rates and growth in home prices over the past eighteen months.” New South Wales and Queensland are showing particularly strong signs of growth.
Population growth slowdown reported by ABS
Population growth from migration is slowing according to the latest figures from the Australian Bureau of Statistics. Queensland, WA, the Northern Territory and ACT have all seen slower growth. "Compared with last year, population gains from migration were lower by almost 20,000 people for WA or a drop of close to 40 per cent," said Denise Carlton from the ABS, "Similarly, Queensland saw a fall of nearly 10,000 people or 24 per cent in its growth due to overseas migration, along with the Northern Territory, down 2,000 people or 40 per cent, and the Australian Capital Territory, down 700 people or 25 per cent.” The figures, for the year to June 2014, show higher population growth in NSW and Victoria. There is also evidence of an ageing population with more people now aged over 65. Denise Carlton says: “Over the last 20 years, this group has grown by 65 per cent, more than double the rate of increase for the working age population and four times faster than children.” The total population of Australia is now 23.5 million with growth for the year of 1.6 per cent.