Michelle Hele| Courier Mail| February 2 2016
PROPERTY price growth is predicted to slow down in 2016, but valuers Herron Todd White have revealed in their latest Month in Review that there are some pockets that may continue to perform well this year.
“We are predicting the residential property market in Sydney in 2016 to be a sharp contrast to the strong growth realised over the past few years,’’ it said.
“A modest market correction is predicted to stabilise at the beginning of the year with values eventually levelling out and remaining flat throughout the remainder of the year.’’
“There however a few pockets of Sydney that we are predicting may continue to perform well in 2016, although of course not at the levels seen over recent years.’’
These include parts of the Rockdale Council area such as Sans Souci, Brighton-Le-Sands and Monterey which were areas for possible continued growth with units still relativity affordable in comparison with neighbouring areas.
Nearby suburbs of Carlton and Allawah were also considered to have some potential.
In the Eastern Suburbs areas such as Centennial Park, Kensington, Randwick and Kingsford were expected to remain in demand despite decreased investor activity throughout Sydney. In the
Inner West opportunities could exist in the proposed Sydenham to Bankstown Urban Renewal Corridor.
There are a few key suburbs which may experience higher than average growth in 2016, according to the report.
Inner west, Footscray, already experienced a rapid growth rate during 2015 and given its closeness to the CBD, improved infrastructure and rich multicultural environment, it has “all the characteristics to be a distinguished performer in 2016’’.
Other suburbs tipped for potential growth in the west include Sunshine, Braybrook and Laverton.
Bayside suburbs such as Hampton and Beaumaris were listed as likely to continue to see strong growth in 2016, although potentially less than in 2015.
The report said Frankston had long been set as the next suburb to experience rapid growth and this year could be its time to shine.
“We believe that 2016 will be one of average growth throughout Melbourne, with the levels of capital appreciation being significantly lower in comparison to 2015.’’
The report said after the “somewhat deflating results in 2015”, most would like to think the coming 12 months “will be a cracker’’ for Brisbane.
But “all signs are, in a general sense, Brisbane property owners can expect an unexciting 2016’’.
“There are near city localities well worth consideration – Morningside, Murarrie and Carina have potential for growth as the East Village project comes to completion.’’ it said.
“Another tip is to stay within established, owner occupier areas and look for affordable detached homes that could do with a lick of paint,’’ it said.
The report said the residential market in South Australia remained stable with little growth.
Suburbs worth watching this year included: Clarence Gardens which is close to the city and has good amenity and character-style dwellings.
Others were Modbury, Dernancourt and Clearview which were undergoing infill development.
Payneham South, Richmond and Devon Park also had potential.
The report said Tasmania’s growth had been restrained by sluggish population growth and export challenges.
Suburbs with growth potential included Glenorchy and Kingston.
The most popular area for buyers wanting to spend more than $450,000 according to the report was Sandy Bay while George Town chalked up the most sales below $220,000.
“The year ahead for (Northern Territory) property is unfortunately not full of rainbows and lollipops,’’ the report said.
“A large concern to the market through 2015 was the significant drop in sales volumes (29 per cent for houses in Darwin and Palmerston and 62 per cent for units and townhouses in the same areas).
“Cranes still hovering in the CBD and the residential subdivisions of Muirhead in the north and Zuccoli to the south will continue to generate the majority of residential construction through 2016.
The activity hubs of Casuarina Shopping Centre, Gateway Shopping Centre in Palmerston and the Coolalinga Shopping Centre will continue to grow through 2016.
“We would anticipate that 2016 is likely to end in a similar fashion to how it has commenced – with caution throughout most of the market, periods of opportunistic upgrade activity and a continuation of price correction in oversupplied sectors,’’ it said.
“Overall, we consider the market in 2016 will be a good opportunity for discretionary buyers, with an increase in upgrade activity persisting throughout the year. We would expect this to be concentrated along the coastal strip and established suburbs within ten kilometres of the Perth CBD’’
The report said the focus would change to older, established areas which comparatively, appeared to represent good buying including Parkwood, St James, Koondoola and Morley.