what slowdown?, page-166

Source : http://www.news.com.au/finance/real-estate/buyers-have-reason-to-be-optimistic-about-future-property-price-growth/story-fndban6l-1226941227257

RESIDENTIAL property in Melbourne and Sydney has years of price increases ahead while southeast Queensland is just at the start of its growth cycle, according to a leading agent.
John McGrath, the chief executive of McGrath Estate Agents and founder of the Australasian Real Estate Conference (AREC), said buyers and sellers across Australia had reason to be optimistic about the future of the property market.


A home at 101 Wyuna Ave, Freshwater in New South Wales exceeded expectations selling for $1,902,000 on the weekend. Source: Supplied
“Sydney and Melbourne are both having great runs and I think those runs will continue but they’re probably a year to a year-and-a-half into their growth cycles,” he said.
“We’re found historically growth cycles go for three to four years so they’re probably half way through.”
But Mr McGrath said when it came to southeast Queensland the market had only just stabilised.
“Sydney and Melbourne have a couple of years to go (with price growth) and I think the market here (in Queensland) has three to four years to go of price growth.”
Mr McGrath said prices had stabilised in Queensland the last 12 months.
He said Chinese property investment was also set to become increasingly important to southeast Queensland.
19 Kenwyn Rd, Red Hill in Queensland sold for $200,000 above reserve on the weekend.

“It hasn’t yet hit southeast Queensland anywhere near the degree I expect it to,” Mr McGrath said.
“In Sydney and Melbourne the Chinese market buying is phenomenal ... and as Sydney is getting more and more pricey a lot of the Chinese buyers will say we want to invest overseas (but) Sydney is becoming very expensive. They will look at where they go next.”
Mr McGrath said that opened up huge opportunities for southeast Queensland.
“As at this point southeast Queensland has not been explored thoroughly and I think you’ll find huge Chinese buying coming into the Gold Coast and Queensland over the next few years as well,” he said.
John McGrath predicts more growth in property values.
John McGrath predicts more growth in property values. Source: Supplied
Chinese investors pumped $5.9 billion into the Australian property sector (commercial and residential) in the 2012-13 year, Mr McGrath said.
Median unit and house prices in Brisbane and the Gold Coast are far lower than in Sydney and Melbourne.
The median price in Sydney for units is $530,000 while it is $350,000 on the Gold Coast.
It is $380,000 in Brisbane and $440,000 in Melbourne.
Mr McGrath said Chinese buyers were just one part of what was feeding price growth in Australia with an improving economy and sharemarket and record low interest rates more important factors.
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