Occupancy Shares Increase in Sydney Could Reach 8% By 2018
By : Ridwan And Aldi Firhand. A | Monday, December 04 2017 - 19:55 IWST
Crown Group CEO, Iwan Sunito (Foto Ridwan)
INDUSTRY.co.id - Jakarta - SQM Research Director Louis Christopher, described as "the most accurate forecaster in Australia" said that he disagrees with flat growth forecasts and believes that the average residential price in Sydney will increase by 4-8 percent by 2018.
SQM Research is a respected Australian research organization, specializing in providing valuations and data across all classes capable of precisely predicting pricing mechanisms in the past.
As is known, by 2015, the Australian Prudential Regulatory Authority forced banks to restrict their lending to investors, a move that was again made earlier this year.
"Banks should lower their investors' loan amount to no more than 10 percent of their total loans per year," Christopher said.
He added, when the Bank opened their loan book in 2016, the market began to accelerate. "We believe that the situation of banks is currently below that threshold and is in a position to reopen their loan book in 2018 and the market will start to rise again," he explained.
The latest monetary report from the Central Bank on November 10 anticipates economic growth of only 3.25%, thus prompting expectations of a new rate hike to occur by the end of 2019.
Meanwhile, McGrath Estate Agents founder, John McGrath, also anticipates a good normal market in 2018. "The Manhattan Effect, people today want to stay closer to the middle of town, that's the key," he said.
McGrath also anticipates the harbor and coastal areas to have a good performance. "Anywhere near the waterway will continue to outperform the market," McGrath said.
Another real benefit for buyers in 2018 is a low interest rate policy that is very likely to continue.
Commenting on the analysis, Crown Group CEO Iwan Sunito said that forecasts for 2018 show how solid the Sydney property market is in Asia.
"Overseas buyers and investors, especially from Asia, always see Australia, especially Sydney as a haven for their investment in this region," said Iwan Sunito through his official statement in Jakarta on Monday (4/12/2017).
He added that the 4-8% price increase predicted for 2018 is a valid proof that the property market in Sydney is still strong.
"It's true, we achieved the highest price growth in 2015, but most importantly the market continues to respond positively every year, the policy of Australian Reverse Bank with low interest that gives us confidence in the market," Iwan Sunito concluded.