Investors who buy now are poised to double the value of their property by the end of the decade according to an expert.
Michael Yardney, author of the book "How to grow a Multi Million Dollar Property Portfolio - in your spare time" predicted that median house prices will be worth over $1million (and in many cases considerably more) in every capital city by 2019.
"In fact they are more likely to be closer to $1.5 million" said Yardney. "Over the last decade, median house prices have more than doubled in every capital city and property values have gone up more than 200% in a number of our cities. These increases have occurred despite a recession in 2001, a change in government, periods of high interest rates and the Global Financial Crisis. We are moving into a new economic cycle with record population growth fuelled by rising immigration and a baby boom. At the same we need more dwellings for the same number of people because we live in smaller households. However we have a shortage of housing, vacancy rates are low, rents are rising and the cost of new construction is escalating," he said.
Yardney noted that major cities of Melbourne, Sydney and Brisbane are growing at an enormous pace some forecasts are suggesting that the population of Melbourne, Sydney and SE Queensland could each grow by close to 700,000 people over the next 10 years.
"This will create a building boom and economic prosperity that should give home owners and investors the confidence to invest in property when they realise that over we will need to build around 170,000 new dwellings each year. It becomes even more fascinating when you consider that Melbourne and Sydney will each require around 50,000 new apartments over the next ten years. This is equivalent to 250 high rise buildings, each accommodating 200 apartments," added Yardney.
|City||Median value Oct '09||Median value Sept '99||% growth 1999-2009||Possible median by 2019|
Source: REIA, Residex, Metropole Property Investment Strategists research