Looking further afield than Sydney and Melbourne

Australia’s property climate has been dynamic and strong over the last several decades, with housing pricing in Sydney growing by 500%, and Melbourne showing the highest growth rate of all the capital cities over the last 25 years. 
‍
But the market started a correction in 2017 and what followed was a two-year slump. The slump may have been caused, in part, due to the difficulty of getting loans from one of the “Majors” was restricted by the imposition of new regulations through the Australian Prudential Regulation Authority (APRA). Things, however, are changing. And if you are looking for that investment opportunity, now is the time to get your finances in order. Contact Acumen Finance to see how they can help you secure a loan to take advantage of this opportunity before it’s too late.

What’s Changing the Scene

In May of 2019, the APRA adjusted its stance on recent regulations, and the market is responding. But it’s more than just the loosening regulations that are affecting the market. The RBA has cut interest rates three times over the last five months to a new, all-time low of 0.75%. Also, many cities across Australia are witnessing population growth. The growing job market and low unemployment rates are building consumer confidence. And with the recent correction of housing prices, many Australians are entering the market, driving a positive property value growth for the last four months in a row.

There is more to Australian markets than just Sydney and Melbourne 

In earlier posts, we looked at the Sydney and Melbourne markets. But there is so much more to Australia. In this post look briefly at the history of the Brisbane, Adelaide, Perth, Canberra, Darwin and Hobart markets. In future posts, we’ll offer some predictions for the same.

• Brisbane
  ‍
  Over the last 12 months, Brisbane showed a decline in values of about 1.3%. Albeit down, the values were still 7.5% higher over the last five years. As of November this year, the market has recovered slightly and is only off by 1.6%.
  ‍
• Gold Coast
  ‍
  The Gold Coast region fared much better than other areas. According to Domain’s House Price Report for the September quarter, housing prices have increased nearly 7% in the hinterland over the past year, and nearly 3% in the city’s eastern suburbs. Median house prices in Clear Island Waters increased 13% in value, Paradise Point by just over 11% and Cumbabah by 6.7% in the 12 months to October. 
  
  
• Adelaide
  ‍‍
  Over the course of the last five years, Adelaide has been fairly steady, up by 10.2%. But the 12 months prior, prices had slipped almost a full percentage point, and as of November, Adelaide currently sits just 1.2% below its all-time high.
  
  
• Perth
  ‍‍
  Sitting on the western shores, Perth was one of the hardest-hit communities, coming in second only to Darwin. Perth currently sits at 21.6% below its all-time market high. Over the past five years, it was down 20.9%. It recovered a bit over the last 12 months to a negative 8.7%.
  ‍
• Canberra
  ‍‍
  The capital city of Canberra looks to be one of the most stable Australian markets in recent history. While it experienced sluggish gains of only 2% over the last 12 months, over the last five years it was up 23.4% and currently sits at its peak. Way to go Canberra!
  
  
• Darwin
  ‍‍
  Darwin is the all-time loss leader in this pack, and one of only two in this review that scored in the negative over the last five years (Perth was the other). Darwin dropped a full 30% over that time and currently sits at 30.6% off its peak. At the 12-month mark, Darwin was down 9.2%.
  
  
• Hobart
  ‍‍
  Hobart comes in as the winner in our group, showing an increase in value throughout Michael Yardney’s State By State Review on Property Update. Over the past five years, the Hobart market was up 39.1%. It showed the strongest placing in the market, with a 2.6% increase over the last 12 months. Hobart has found its new peak where it comfortably sits today.
  ‍
  

If you want to jump aboard the bandwagon, contact the loan experts at Acumen Finance. Using a pool of high net-worth individuals and companies, and backed by a team of expert consultants, documentation specialists, and creative thinkers, they can match you to the best-suited tier 2 or P2P lender in the market. They know who is lending, the requirements, the caps and the restrictions. They specialise in private lending and can help you secure a loan for property investment. Acumen has the contacts to bring together all the right people for investment lending, and they can do it faster than a traditional lending institution.