Expert property predictions
The Sydney market has begun to slow recently, but Jovcevski says it remains relatively strong.
“I’d expect clearance rates to stay pretty steady around the 65%-70% mark this autumn. The market has slowed down, and now that sellers are beginning to adjust their expectations and auction reserves, we’ll likely see more sales go through,” he said.
The Melbourne market, which is still driven mainly by first home buyers, is still growing, especially when viewed in comparison with Sydney. Jovcevski is counting on the market in Melbourne to remain stable.
“Clearance rates will probably stick around 70% - I’m not expecting a drop in Melbourne the way there might be in other markets,” he said.
Jovcevski has Canberra pinned as a top performer this autumn, with clearance rates going as high as 65%-70%.
“The market is a bit quiet at the moment, but Canberra is a great spot for investors because it has low vacancy rates and high rental yields, so there’s always going to be demand there,” he said.
You can’t judge Hobart by its low clearance rates, because according to Jovcevski, it isn’t an auction dependant market. Instead, a better marker might be the super low vacancy rates in the city at the moment.
“Low vacancy rates and interest from interstate investors means the Hobart market could even grow another 10% this year,” Jovcevski predicted.
Like Hobart, Brisbane isn’t an auction focused market, so the low clearance rates aren’t cause for concern. Jovcevski said an improving jobs market after the end of the mining boom and the relatively low prices available in the city might tempt first home buyers to the market.
“Brisbane houses in particular I’d expect to rebound and improve. Units in Brisbane never seem to do as well comparatively,” he said.
“Consistency is the name of the game in Adelaide. The market generally see 3-4% yearly growth and that trend is likely to continue,” said Jovcevski.
This slow and steady growth makes Adelaide a reliable pick for investors, but it may also be another area of interest for first home buyers this autumn, thanks to still affordable prices.
The Perth market has been in freefall for a while now, but according to Jovcevski, what goes down in the property market must come back up, and the city is in for an upward swing - just not quite yet.
“Perth is getting close to the bottom of the market now, but until it hits that point, there’s going to be a lot of ups and downs. This autumn might be too soon to buy in Perth. It’s not a market for the faint of heart at the moment,” Jovcevski said.