Why invest in property in 2008?
Many commentators are predicting a great year for residential property due to a combination of key factors operating together to
increase demand and
reduce supply including:
- The return to residential property as a safe haven against the volatility of the stock market and the global credit crunch;
- The growing shortage of new housing stock and the flow on demand for established property;
- Record low housing affordability levels pushing up rental demand and rental yields;
- A bumper year for international migration (net 178,000 over the year to June);
- The reduction in the number of people per household;
- The widely anticipated introduction to the market of products allowing superannuation schemes to borrow to by residential property.
ANZ Australian Property Outlook 2008 predicts that:
- Rents will continue to soar with the rental vacancy rate steadily declining to its lowest level since 1984 with rental vacancy rates below 1.5% in all capital cities;
- House prices will increase as the housing shortage reaches record levels with the underlying shortage for houses to grow from 185,000 in 2007-2008 to 200,000 in 2009-2014.
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