One Country, Many Marketplaces

One Country, Many Marketplaces

Although the media often speaks about the Australian real estate market as one market or even state/capital city markets, this is probably not the most useful way to think about real estate. The real estate market is actually far more segmented, and individual markets exist right down to a suburb level. In fact, sometimes there are different conditions even in a single suburb. These different marketplaces exist due to factors such as supply, demand, local employment opportunities, transport and infrastructure.

Many parts of Sydney have experienced strong capital growth over the last three and a half years. Melbourne has also seen strong capital growth. However, the market has not been the same in every suburb of these capital cities. In addition, other capital cities have seen price movement in negative territory. Some areas have been affected by the mining investment slowdown with both rental yields and price growth slowing.

Make sure that you don't just read the headlines when thinking about buying a property. While there are markets within markets in Australia, it also pays to remember that property is typically a long term game. It's far better to conduct on the ground research. Speak to local real estate agents in the area you are looking to buy in, find out about local infrastructure plans. By taking care in the house hunting process you are far more likely to make a successful purchase.

Posted by Charles Tarbey on 18/02/2016 at 5:21 PM | Categories:

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