Australia in an an affordability-driven boom. But what does that mean? An affordability-driven boom means significant increase in property market activity and prices, primarily fuelled by the demand for affordable housing. In this type of market, the message is clear, act act quickly and decisively.
Markets Aren’t Equal: Choose Wisely
Recent CoreLogic data reveals that not all property markets are created equal. In fact, there’s significant variability in market performance across different cities. For instance, while Sydney, Brisbane, Adelaide, and Perth are at their peak and continue to rise, cities like Melbourne, Hobart, Canberra, and Darwin are below their peak levels.
This disparity means that potential buyers need to carefully evaluate each market before making a decision. By choosing wisely, you can capitalise on rising markets and avoid potential pitfalls in markets that are still struggling to reach their peak. The benefit of acting on this information is securing a property that promises better returns and growth potential.
| Peak and Rising | Below |
| Sydney Brisbane Adelaide Perth | Melbourne Hobart Canberra Darwin |
Check out the Herron Todd Property Clock for more insight into the state of these markets.
Affordability Will Not Get Better
We are currently experiencing an affordability-driven boom, especially in cities like Sydney and Brisbane. The data shows significant annual changes in property values in these areas, underscoring the trend. As borrowing capacities are increasingly strained, the demand for affordable housing continues to rise. This trend is evident in areas with high annual growth rates. Acting now to secure a property in these booming, affordable areas means you can lock in a property before prices escalate further. The benefit here is clear: securing a home or investment at a lower price point before affordability worsens.
| Sydney Leaders | Brisbane Leaders |
| Mount Druitt: Up by 13.96% Fairfield: Up by 13.89% Liverpool: Up by 10.1% Campbelltown: Up by 10.07% Saint Marys: Up by 9.39% | Springwood Kingston: Up by 25.55% Loganlea-Crestmead: Up by 21.51% Forest Lake: Up by 21.48% Beenleigh: Up by 19.33% Browns Plains: Up by 19.19% Ipswich: Up by 19% |
Be Decisive in Property Selection
Successful property selection isn’t just about finding a property; it’s about making smart, strategic decisions. The process involves three critical steps: strategy, location, and the actual property which we explore in our Property Buying Triangle. Decisiveness in this process is crucial, as hesitation can lead to missed opportunities and higher costs. Many homebuyers have faced challenges due to indecisiveness, missing out on purchasing in their desired areas because they waited too long. By being decisive and following a clear strategy, you can ensure that you secure the best possible property at the right time. The benefit of decisive action is avoiding the regret of missed opportunities and potentially higher future prices.
Conclusion
Borrowing capacities are being hammered, no longer giving people access to the properties they once could, and that is across the country. So, people are looking for value. That’s exactly what you need to do as well.
Many TMAP students working with PA Realty have faced challenges due to indecisiveness. Some have missed out on buying in their desired areas because they hesitated. The lesson here is clear: when it comes to property selection, swift and informed decisions are crucial.
Talk to your mentor today or, if you’re new here, speak to us about getting started before your borrowing capacity can no longer help you access the homes you desire.
