With many property developers and builders constructing new houses, flats and townhomes, many are breaking into property markets for increased comfort and monetary value.
In line with this, the constant increase of housing loan activities across the nation (particularly in Melbourne and Sydney) spurs the property industry to provide potential clients with less hassle and more affordable options.
So what can we expect from the property market in the coming months?
More land property development
More house and land packages will be introduced to the market which accounts for higher competition rates among property developers and builders. Having said that, lower deposit amounts helps lessen the pressure of giving regular payments.
So if you’re looking to use your savings or lend from the bank (for larger amounts) to buy a property and build your dream home, you can anticipate a wide selection of land lots in the coming months.
Housing affordability issue still prominent
While there is an increase in quantity for land development projects, aspiring home buyers may still have to face problems in terms of affordability.
The recurrent issue undoubtedly affects potential home buyers, particularly first-timers.
Although a decline in housing prices is expected within the first two quarters of this year, the issue will linger in the next months and can even take years to resolve (but at least, there is progress).
Smaller land lots
One effective solution to reduce property prices is to build smaller lots. Around 3-4 years ago, some research claims that the standard 600 square-metre size for lots in Melbourne and Sydney was downgraded to 400 sqm to make the property less pricey for potential buyers.
This year might be a bit of a game changer for the property industry with some developers planning to build 220-300 sqm range lots.
First-time home buyer incentives
State governments including Victoria and NSW have been increasing first-time home buyer grants due to the growing number of owner-occupier housing loans for the past 6 years (since 2012).
According to the recent report made by the Housing Industry Association (HIA), newly built units with designs mostly suitable for this group have grown recently.
Along with the market trend, slow house prices and low-interest rates also stir the interest of most prospective buyers.
Note: First-time home buyer incentives and grants will vary from state to state.
Home builders providing more discounts
Housing supply wouldn’t be a problem if potential buyers will have more options when it comes to choosing a reliable builder. This year, home builders that provide bigger discounts, including pre-construction benefits, are expected to increase.
As soon as the consultation takes place, ask questions concerning their credibility. It’s always safe to demand pricing quotes and their credentials to check the degree of their reliability.
With these trends expected to rise this year, would-be buyers and real estate industries can benefit from the change.
Before jumping the gun, it’s important to keep yourself abreast of property prices and market updates. Doing so enables you to spot signs of fluctuations in property value as well as perceive a positive turnaround.
Domain’s recent forecast on property prices reveals that there is a high probability of a 4 per cent growth in 2020.
So as you make your investment plans, keep an eye on every factor that influences the price flow (e.g. population growth, increase in wage, etc) in the last two quarters of the year up to the next.
Who knows? State governments might be able to turn the corner of affordability issues along with other housing dilemmas in few years time.
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