How is Australia's property market looking for 2016? The head of one of Australia's biggest real estate groups is predicting some trends that will play out this year, The Adviser reports.
It's "the year of the first home buyer," says Grant Harrod, CEO of LJ Hooker. He attributes this potential trend for 2016 to the slow and low levels of price growth, increasing affordability and the greater number of housing options brought about by new developments.
"The construction boom across the country over the past two years will attract the under-30s who are happy to live in high-density inner-city hubs," he said.
"These developments positioned close to transport, universities and entertainment will become affordable options."
Harrod also sees changes to investor lending among factors that could improve the growth of first time home buyers as "they will no longer be fighting over the same properties".
"Investors who have bought off the plan will also look to be selling down, opening another option for first-time buyers," he said.
While Sydney will continue to tackle price issues, price corrections in Perth and Brisbane make them an ideal entry point for those who are looking to buy homes for the first time, noted Harrod.
"A downturn in the number of investors in Melbourne will also free up a surplus of stock, in particular apartments in the CBD, for young buyers," he added.
Renovating is also a trend to be expected as Australians look to investing and increasing their capital on their homes.
"Adding value through minor work should become increasingly popular and properties that offer scope for this are not likely to sit on the market long," Mr Harrod said.
"People are no longer buying and staying put for 40 years, they are looking at different strategies to make money from their own piece of real estate.
"Renovations could be the edge needed when it comes to re-selling."
A market update by the real estate group also sees the rise in tourism and lifestyle-focused economies with the fall of Australian Dollars.
