It’s important to question the media
The media, at times, can publish articles that do not always offer a balanced and big picture perspective – rather, they gravitate towards a headline that will gain sales and quick clicks. On more than one occasion there have been articles published that do not include the whole story, which can mislead readers.
There is no doubt that the media has a large impact on readers and this can affect their decision-making process. This is why we encourage Fishermans Bend Realty clients to understand the bigger picture. We have the main drive behind education so that our clients aren’t missing out on opportunities based on misleading information.
What’s the issue?
Recent publications have painted Melbourne’s property market in a very negative light. One such recent article stated, “Melbourne’s property downturn is officially the worst on record.” – Frank Chung, news.com.au, it is no wonder why people have a pessimistic outlook on the current state of the property market. It is not to say that such statements aren’t correct or supported by facts – but rather that there is always a broader perspective to be had.
Brisbane and how it compares
As a case study, we turn to the recent fall and rise of the Brisbane property market. In 2018 the market was challenged, scrutinised and regarded as a complete mess. At the beginning of 2018, Brisbane stepped into the spotlight with dipping property prices based on the influx of newly developed properties, specifically inner-city apartments, entering the market. There was a surplus of apartments, units and townhouse developments in the middle of Brisbane. The market was being talked about as being in freefall, especially with some reporters and property commentators publishing statements like;
“Get out now. Steer completely clear of units,“- Anna Porter, buyer’s agent and former valuer.
Such statements were highlighting that there was distress within this segment of the property market. Similar to the tone that is being sprouted in recent forecasts for the Melbourne market. The idea that there is an oversupply of unit, apartment and townhome developments is riddling the media coverage. However, what publications tend to leave out is the idea that the market is forever changing, and this is only a moment in time. Factors like population growth in major cities not slowing down anytime soon, the demand will always return.
“Limited market supply should help to support prices when demand for housing revives.“ – Michael Bleby, senior reporter for the Financial Review.
Why Melbourne won’t stay at the bottom for long
The Urban Developer recently published the numbers for the population growth forecast for major cities Australia wide.
“In the second consecutive quarterly survey, Victoria and New South Wales share the top spot of best-performing economy, and the nation’s slowing housing sector.” – The Urban Developer
Victoria’s population growth is expected to continue to be strong with a 2.20% increase in the coming years. Which, directly correlates to the increase in demand for the property market.
It’s the simple cycle that when developments begin, housing begins to become more available and the demand starts to slow. This then puts the market under stress. Properties aren’t selling as quickly and the competitive pricing becomes more aggressive. In turn, the developments slow, or cease due to tight funding and costings.
However, population growth does not replicate this trend. Whilst there is consistent population growth, there is a guaranteed increase in the amount of housing required. This growth puts pressure on the demand for well-located and accessible living.
Therefore, resulting in a market turnaround where supply and demand aren’t in equilibrium – pushing prices up and rewarding those who acted when the opportune moment presented itself.
Information and where to find it
Again, it is important to well informed and educated when it comes to purchasing a property. For most people, it will be the biggest purchase made in their lifetime. At Fishermans Bend Realty we aim to make sure that anyone who touches base with us feels informed and educated about all the facets that make up the property market.
If you are thinking of entering the market and want to learn more about becoming a first home buyer you can register for our free event that is fast approaching:
Tuesday 28th May 5.30pm for a 6pm start, OR
Sunday 2nd June 9.30am for a 10am start.
All welcome for a free education session about buying your first home. We will walk you through home loans, property tips, Conveyancer process, grants, etc..
More information and registration follow our Facebook link
For more information on news.com.au article CLICK HERE
For more information on the Financial Review CLICK HERE