Australia’s property market is set for single-digit growth, apartment oversupply and ‘renovesting’ in 2018, according to some property and economic commentators.
Graham Cooke of comparison website finder.com.au said interest rates were expected to change little until the second half of 2018, after the Reserve Bank of Australia (RBA) this Tuesday left the official cash rate on hold at 1.5 per cent at its final meeting of the year.
“With market onlookers hinting that the next move will be up, now could be a good chance for mortgage holders to fix their rate,” Mr Cooke said.
Renovating is another theme likely to surface next year, with owners adding value to their investment properties through renovations, he said.
“With the property ladder becoming increasingly difficult to climb, we may see more ‘renovesting’ in 2018; adding value to current properties through renovations,” Mr Cooke said.
Property prices were expected to rise in eastern Australian capital cities next year, but at a slower pace than in recent years.
“While growth in Sydney is expected to slow, experts are tipping stronger growth in Melbourne and Hobart,” Mr Cooke said.
Michael Yardney from property consultants Metropole, predicted 4-6 per cent growth in Sydney, 6-10 per cent in Melbourne, 3-6 per cent in Brisbane, 6-10 per cent in Hobart, 4-7 per cent in Canberra and 0-4 per cent in Adelaide, with both Darwin and Perth remaining relatively flat.