3 Emerging Trends in Property Investment

What will 2019 hold for the property market? We look at some of the biggest trends we’re likely to see in the year ahead.

Investors seeking regional areas over metropolitan

As property price growth continues to slow in Sydney and Melbourne, there is an increasing demand for regional properties by investors due to more affordable housing opportunities.

According to CoreLogic’s Home Property Value Index for February 2019, the national median house price value slipped a further 0.9 per cent. In contrast, regional housing market values are up 2.4 per cent overall.

There are still plenty of opportunities for investors despite the downturn in Australia’s two largest cities when there’s fewer buyers to compete with.

Regional areas offer a mix of lifestyle appeal, affordable price points, access to amenities and transport options.

Units will outperform houses

Nationally, unit prices are  expected to do better than house prices in the coming years, with a forecast 2-3 per cent growth over the next two years, according to the February 2019 NAB Australian Housing Market Update.

The anticipated unit developments in the capital cities like Sydney and Melbourne could possibly drive prices further down in the coming years. Also, new stamp duty concessions in Melbourne and Sydney may help to balance this out and boost unit property values.

However, unit prices proved more resilient than detached house values in 2018. National median house prices falling 6 per cent in 2018, while units fell just 3 per cent. This trend looks set to continue in 2019.

Sydney, the weakest performing capital city in 2018 will see the strongest unit price growth at 3 per cent. Nationally, unit prices are tipped to edge up by 2 per cent in 2019 and 3 per cent in 2020. 

Great buying opportunities for investors

Amendments to legislation which came into effect in July 2017, restricting some tax depreciation deductions that can be claimed for older investment properties.

Brand-new properties have resulted in property investors targeting new builds to optimise their cash flow and maximise tax deductions.

For these new properties, BMT Tax Depreciation found investors an average of $12,268 first year depreciation deductions in 2017/2018.

In 2019, it’s more important to keep an eye on market trends and latest developments affecting Australian property market.

MyBMT, helps property investors make more informed decisions relating to their investment property. The new research and insights tab assists investors to learn more about the area. It also informs investors of any lodged planning applications and new developments so there are no surprises after purchase that could decrease the property’s value.


Article provided by BMT Tax Depreciation