Another dismal year for first homebuyers, but off-the-plans flying off the shelf in Brisbane
Another dismal year for first homebuyers, but off-the-plans flying off the shelf in Brisbane
Posted on Monday, March 02 2015 at 10:59 AM
Falling interest rates will bring more pain to prospective homebuyers this year, with many first homebuyers likely to be priced out of the market despite an imminent rate cut, according to new research by comparison website finder.com.au.
Australia’s largest Reserve Bank Survey by finder.com.au of 37 leading experts and economists, including from
the big four banks, are split on their forecasts for tomorrow’s board meeting.
More than half (57 per cent) are expecting the cash rate to hold while 16
experts (43 per cent) are betting on a cut.
Of the major four banks,
economists from ANZ, Commonwealth Bank and Westpac all expect the cash rate to
fall on Tuesday, while National Australia Bank’s chief economist Alan Oster is
forecasting no change.
Michelle Hutchison, Money Expert at finder.com.au, says first homebuyers
will need to work harder to jump onto the property ladder this year, with fewer
first homebuyers expected to enter the market.
“It’s going to be one of the toughest years yet for first homebuyers.
“In fact, finder.com.au estimates we’ll see just over 92,000 first homebuyers
this year, which will be the third consecutive year that first homebuyer
numbers have declined. Last year there were 94,571 first homebuyer home loans
financed in Australia, down from 98,217 in 2013 and close to 100,000 in 2012.
“First homebuyers will need
to work harder than previous years, with fewer government incentives and higher
property prices adding greater pressure on these Australians.”
Meanwhile, the Queensland
capital tops the list for online searches for off-the-plan apartments in
Queensland over the past three months, according to realestate.com.au’s New
Apartment Hotspots list.
These 10 Queensland suburbs have had the most views
for off-the-plan apartments in the past three months:
1.
Brisbane
2.
Wooloowin
3.
Noosa Heads
4.
Kangaroo Point
5.
Broadbeach
6.
Everton Park
7.
Hamilton
8.
Highgate Hill
9.
South Brisbane
10.
West End
Inner-city areas around Brisbane are attracting the
most interest for off-the-plan apartments. Inner north and south areas of
Brisbane are preferred with Wooloowin, Hamilton, South Brisbane and West End
sitting in second, seventh, ninth and 10th positions. Bayside areas close to
the beach are also high in demand, with Noosa Heads and Broadbeach coming in at
third and fifth spots respectively.
CBRE project director Jon Rivera said he’s not
surprised by Brisbane’s popularity for off-the-plan apartments.
“Brisbane will be a focus for the next couple of
years for local and international investors,” he says.
“The key factor driving demand for off-the-plan
apartments is affordability compared to other capital cities. Brisbane
apartments are also attracting strong yields.”
Rivera says Brisbane is maturing from the city it
once was to rival the likes of major cities Sydney and Melbourne.
“In terms of its infrastructure and the retail and
dining precincts both within and surrounding the CBD, it’s a transforming,
maturing market,” he adds.