This is a guest post from Ben Everingham of Pumped On Property.
As Ron Burgundy from Anchor Man puts it best…that escalated quickly!
In 2014 the Sydney housing market recorded a 17.5% increase in average house prices, the Melbourne market recorded an 8.1% increase and the sleeping giant Brisbane began to wake.
With numbers like these in 2014 there is only one question Australian investors are asking:
Will the NSW, QLD and VIC real estate markets continue to rise in value in 2015?
What’s ahead for the NSW real estate market in 2015?
- Sydney’s property prices will continue to grow by 4 – 5% p.a. over the next 5 – 8 years, according to Residex.
- Prices in Sydney are expected to continue to rise in 2015 as the market comes off a decade of relatively average price growth, according to Harley Dale at the Housing Industry Association.
- The QBE Australian Housing Outlook 2014 – 2017 report predicts total house price growth for Sydney of 13% for 2014/2015 and 2015/2016. Although price growth expected to slow down throughout 2015 – 2016.
- Sydney is set to become the city of renters, as median values push more and more homeowners out of the market, according to John Edwards from OnTheHouse.com.
- The ripple effect will begin to take effect in late 2015 with price growth flowing through to other regional markets, according to the QBE Housing Outlook.
What’s ahead for the QLD real estate market in 2015?
- Price growth in Brisbane is expected to be moderate in 2015 (between 3 – 7%).
- There is still relatively affordable entry level buying in Southeast Queensland.
- Your Investment Property Magazine has coined South East Queensland as the market to watch in 2015, with long term growth prospects on the horizon.
What’s ahead for the VIC real estate market in 2015?
- According to Residex the price growth VIC has seen over the last decade will not continue into the next.
- The QBE Australia Housing Outlook 2014 – 2017 believes the number of new houses and units under construction will tip the market into an oversupply in 2015/16.
15 NSW, QLD and VIC suburbs set for growth in 2015 for under $300,000
|Suburb||Property type||Median price||Vacancy rate||Rental yield|
|Berkeley Vale, NSW||Unit||$244,333||1.64%||5.41%|
|West Gosford, NSW||Unit||$272,000||0.73%||6.33%|
|Mount Druitt, NSW||Unit||$280,000||0.78%||5.99%|
|Fairly Meadow, NSW||Unit||$298,147||1.4%||6.55%|
|Parramatta Park, QLD||Unit||$214,667||1.42%||6.03%|
|Ballarat Central, VIC||Unit||$222,000||2.33%||5.29%|
Leading infrastructure projects in the works for NSW:
- $11.5 billion WestConnext road project.
- $8.3 billion North West Rail Link.
- $6 billion Barangaroo development.
- $3.5 billion Badgerys Creek Airport.
- $3 billion NorthConnex project.
- $2.7 billion M! – M@ link.
- $2.5 billion Darling Harbour Convention Centre.
- $1.6 billion new CBD and South East Light Rail Project.
Leading infrastructure projects in the works for QLD:
- Origins $24.7 billion Australia Pacific LNG project off the coast of Gladstone.
- $19.6 billion Curtin LNG project.
- $16.2 billion Santos coal steam facility at Gladstone.
- $1.9 billion Sunshine Coast University Hospital.
- $1.4 billion Gateway North project in Brisbane.
- Construction of a $250 million industry and business park at Westgae, Wacol.
- The Gold Coast in hosting the Commonwealth games in 2018.
Leading infrastructure projects in the works for VIC:
- $8 billion Melbourne Rail Link.
- $8 billion East West Link project for Melbourne.
- $5.3 billion Regional Rail Link project.
- $4.4 billion Kipper-Tuna-Turrum oil and gas project.
- $1.3 billion Comprehensive Cancer Centre, along with other major health projects including Bendigo Hospital, Box Hill Hospital and the Royal Victorian Hospital.
Important population statistics for NSW, QLD and VIC:
- NSW population growth hotspot:Greater Sydney.
- QLD population growth hotspots:Ipswich, Gold Coast, Sunshine Coast and Fitzroy.
- VIC population growth hotspots:South Morang, Pakenham South, Geelong and Ballarat.
Ben Everingham’s mission is to help you replace your income through property investing so you can do what you love…full time. Learn more