Month-In-Review-March-2015

Month in Review
March 2015
for the future of the now labelled Western Sydney
CBD. It will comprise of a core residential and
commercial precinct with further enhancements to
existing infrastructure including the Western Sydney
University, Westmead medical precinct, Parramatta
Stadium and the currently under capitalised Rosehill
and Camellia precinct are all primary focuses for the
project. With a central location, strong rental demand
and future growth potential Parramatta and its fringe
suburbs are always a popular choice for the astute
investor.
Overall we consider the western Sydney market
to be strongly positioned. While heavily reliant
and sensitive to the economic client, confidence is
currently high and buyers are willing and able to
borrow at a greater capacity keeping the property
market in a strong position. The biggest question
of 2015 is how long the market will maintain these
strong conditions. Those highly geared will be
affected most when interest rates increase.
Canberra
The Canberra residential market is complex with
many factors interacting to affect demand, supply
and ultimately price. On a macro level, the Canberra
residential market aided by historically low interest
rates has a number of underlying positives including
generally strong employment and a perception of
good job security.
Near record low interest rates and low
unemployment levels have resulted in continued
strength in the ACT economy and property market,
particularly the residential sector. Despite market
uncertainty in the lead up to the September 2013
Federal election and the subsequent restructuring
and downsizing of the Australian public service in late
2013 and early 2014, the ACT property market and
the broader economy have remained resilient.
Recent rate cuts are expected to boost the property
market at all levels for both owner occupiers and
investors. The sub $750,000 housing market is
expected to receive the most positive change as
the cuts are likely to positively impact buyers in this
market sector the most. The prestige housing market
is expected to remain steady, however we have seen
strong recent sales activity in the $2.5 million plus
housing market. Some improvement is expected for
the unit investor market as cash becomes cheaper,
however high supply levels remain a concern. The
high supply levels have meant unit landlords and
investors have had to adjust rental expectations in
line with the market to avoid vacancies. This rental
trend is expected to continue. Overall, there is depth
in Canberra’s residential market and it is seen as one
of the strongest markets in Australia. A negative
aspect however is the limited population growth.
The impact of Mr Fluffy asbestos contaminated
homes and the eventual removal of these properties
from the market will have a positive effect on the
broader ACT economy and increase demand levels
for housing in the mid market point. Accordingly,
demand for residential property is set to increase.
Given current stock levels both for
sale and rent, softening dwelling
commencement numbers and
increased demand levels, we
anticipate the residential market in
the ACT to tighten over the short
term and prices to firm.
Small segments of the market including units
along the Flemington Road corridor in Gungahlin
are expected to remain soft plus those properties
situated in less sought after locations or providing
inferior accommodation.
Illawarra
The Illawarra property market has continued to
progress well into the new year and continues to
record strong sales activity due to the continued low
interest rates.
Demand is still outweighing supply in many areas
and the low interest rates are creating a competitive
market environment. Agents are advising that many
Residential
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