Future looks bright for investors
One of the key differences between Australia’s residential property market and those of other major developed nations is supply and demand. The US has way too much property available to the small number of buyers brave enough to venture back into the market. In Australia, we have a shortage that is now estimated to be around 200,000 homes.
The other differences are the strength of our financial sector and general economy, our record population growth and our better than expected unemployment rates.
And things are only going to get better for us. The International Monetary Fund (IMF) says we’re likely to be the only advanced economy in the world to record real GDP growth this year – around 0.7% and rising to 2% next year. Its average projection for all advanced economies is minus 3.4% in 2009 and 1.5% growth next year.
We’re often referred to as the ‘lucky country’ but there’s a lot more than luck making our property market run hot. As we move towards the end of 2009, my outlook for 2010 remains extremely positive. The most interesting element will be the impact of investors – this important pool of buyers can make the difference between a good market and a booming one…and investors are definitely coming back to real estate.
*John McGrath is CEO of McGrath Estate Agents. He is a regular contributor to the online Switzer News (switzer.com.au) and Sky Business News commentating on Australia’s property market.
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