What to watch
for in 2017
The Newcastle and Lake Macquarie property market enjoyed a solid year of growth in 2016. Will that continue in 2017? Nobody knows for sure but we thought we’d start the year by informing you of some factors to consider that we hope help in your selling and/or buying decisions. To keep abreast of the property market this year savvy property sellers and buyers will be best served in focusing on some key indicators such as interest rates, unemployment and government policy.
Similar to this time last year, we have seen an extremely buoyant market place and this appears set to continue into 2017.
The release of the federal budget is one to watch. With national debt extremely high, the government appear to have little choice but to unleash some tough measures this year. There has been incremental hints coming from Canberra about raising the GST and adjustments to superannuation. Real estate markets may feel the pinch from these changes.
Interest rates remain at historically low levels after the Reserve Bank of Australia (RBA) unexpectedly continued to cut rates in May and August of last year. While there is popular belief that interest rates may follow the U.S. Federal Reserve and rise this year, this may not necessarily have a major effect on the Newcastle property market.
Major projects such as the Lake Macquarie Transport Interchange (LMTI) connection between Glendale and Cardiff, the new Light Rail system in Newcastle’s CBD and the construction of the very impressive ‘NeW Space’ for the University of Newcastle are examples of infrastructure investment that create an influx of activity in the property market. Additionally, the acquirement of the V8 Supercars coming in November of this year, has and will continue to raise the profile of our town.
This has gained the attention of investors and developers alike with enormous price rises and low rental yields in Sydney driving investors towards Newcastle seeking much more affordable investment opportunities with attractive capital growth potential.
In summary, we are expecting continued solid growth in our local market this year, with low stock on the market for sale leading to strong competition from buyers.
Rising house prices coupled with an influx of investors entering the rental market has resulted in the rental market remaining quite flat. Investors entering the market have found it more difficult finding attractive yields in the Newcastle and Lake Macquarie property market and we are seeing more investors looking at longer term growth options and capitalising their return with the development of granny flats and second dwellings.
Noel McFarlane Real Estate will keep you informed of anything we feel will impact your local property market for the coming year via our newsletters, buyer’s club email alerts and our Facebook page.
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Newsletter 2017 What To Watch For