Predictions for FY18 from yesterday's REIV Economic Forecast Luncheon

July 29, 2017
Ashley Simmons

A great opportunity yesterday to hear from two leading figures (Alan Oster & Mark McCrindle) on the economy & demographic trends at the REIV Economic Forecast Luncheon. Key take-outs were:

* business confidence is good, though seemingly not strong enough to show reinvestment currently

* industry performance has been varied across different sectors, with retail & mining being hit the hardest

* the property market is strong, though depending on individual states (WA/TAS/Nth QLD not great; VIC/NSW/SA doing well)

* the banks are looking at a micro level re industry & also postcode when making lending decisions

* housing under-supply in Sydney & Melbourne, however the risk longer term is seen in a potential over-supply of 1 bedroom apartments in certain areas, impacting values

* Melbourne is currently (& predicted to remain) the strongest market in the country for migration, growth and performance

* unlikely to see much short-term movement in rates from the RBA, with concern that any rate decreases in particular could fire up the housing market, though may still see rate movement from the banks

 

Thanks again to Eastpoint Property consultants for the invitation - a very worthwhile event for sure!

Posted in: Property market

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