With the country's jobless rate at a historical low, migration at a record high and taxes lowered, the environment is perfect for investors to buy in
In the past 12 months, Australian interest rates have gone up, the Australian dollar has remained steady against the US dollar, occupancy rates for rental properties have started rising, and prices have stabilised in several cities.
Australia's unemployment rate is at a historical low. Migration is at an all-time high. The economy is healthy. Taxes have been lowered. These facts must have an effect on the Australia property market next year. The question is what?
Interest rates in Australia have moved up to about 7 per cent, still relatively low historically, and the rental yields about 4 to 5 per cent have only just started to go up, meaning investment demand has remained slower during this year.
Although, as any specialist knows, it is foolhardy to talk about Australia's property market as if it is one homogeneous whole. Each city, and even sectors within each city, moves on different cycles.
For example, the Sydney and Melbourne markets peaked in the middle of 2003, Brisbane grew until late 2004, and Perth is now Australia's strongest real estate market, booming through last year to this year.