Property sector experts say housing has survived crisis- The Courier Mail
Melissa Ketchell December 26, 2009
RELIEVED property sector experts are optimistic about future growth for the industry after
residential values seem to have dodged a bullet in the fallout of the global financial crisis.
Experts across the country are predicting capital increases of about 5 per cent. Some are warning of problems associated with an undersupply of property. But Brisbane-based property researcher Michael Matusik has gone against popular opinion to suggest that developers should be cautious. "I have been banging on about an undersupply for close to 10 years, but circumstances have changed in the past six months to suggest that maybe we are, firstly, already building enough dwellings to cater for demand, and that we might even be heading for an overbuild if current trends continue," Mr Matusik said. He said increased foreign migration hadn't resulted in as big as demand as expected due in part to large household arrangements.
RPData researcher Cameron Kusher is more bullish than many commentators and predicts 7 to 8 per cent growth in Brisbane next year. He cited availability of finance as the wildcard that could affect how many investors get into the market. He predicted many would look at older stock that needed renovating. "The best performing suburbs will be those close to transport and schools, including Coopers Plains, Keperra and areas which were still affordable," he said.
BIS Shrapnel senior project manager of residential property Angie Zigomanis expects growth of about 5 to 6 per cent in established residential property next year. "Over the next two or three years, I think you'll find interest rates will keep slowly edging upwards and it'll keep a lid on the massive double-digit price growth we were seeing previously," he said.
Ray White Real Estate chairman Brian White says Australia has avoided a dramatic downturn in house prices. "All of us seem to have forgotten the anguish of the first four or five months of the year and we're trying to understand just how on earth the year finished so strongly," Mr White said. He has forecast growth of 5 per cent for next year.
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