Demand and prices to rise: McGrath

Demand and prices to rise: McGrath

Posted on Friday, September 27 2013 at 2:53 PM

The property growth cycle has started with demand surging, house prices on the rise and overseas buyers on their way, according to John McGrath, chief executive officer of McGrath Estate Agents.

Data from the McGrath Report, released this week, highlights
several standout factors helping to buoy the market including increased
property investment through self-managed super funds (SMSFs), significant
infrastructure growth, low interest rates and an influx of Chinese investors.

SMSFs have increased their investment into residential property by 10.4
per cent in the past year, according to the report.

In addition, major infrastructure projects such as the Legacy Way
Motorway near Toowong, the Brisbane CBD redevelopment which will include a
43-storey tower, the Southport Hospital and light rail, the Gold Coast 2018
Commonwealth Games and the Sunshine Coast University Hospital are all expected
to improve values and demands in these areas.

McGrath says he expects interest rates to bottom for the remainder of
the 2013 but start to rise in the second half of 2014.

As a result, he predicts 2014 will see continued residential property
recovery Australia-wide, with several cities surging in demand and prices,
including Brisbane.

Sydney is expected to lead the way but southeast Queensland will likely
show the overall strongest growth market in Australia over the next three years,
according to the report.

McGrath
sees the housing market on the Gold Coast improving after being oversold and
finally starting to recover from the global financial crisis. This is where
retirees and empty nesters will come to make the most of still low prices and
to enjoy a sea change.

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