Happy New Year everyone and welcome to 2017! At Harcourts – The Property People, we are excited about the year ahead.
Looking back, 2016 was the year where median house growth returned to more normal levels, following huge growth in both 2014 and 2015.
St Helens Park is a typical example of many of the suburbs in our region. Growth in St Helens Park was 20% in 2014, 27% in 2015, and 4% in 2016. In the first quarter of 2016, most of our suburbs experienced little or negative growth, however this improved over the following three quarters, resulting in good overall growth.
This is attributed to the fact that the Macarthur region is a popular place to reside and relocate to, given inner Sydney’s high purchase prices and lack of home availability. The Macarthur is a great place to commute from, as well as offering fantastic infrastructure and facilities for singles, couples, families and retirees.
Auction sales were also highly successful in 2016. Our office conducted 13 in-room auction events over the year, each time showcasing an average of 6 properties at the event. Auction sales from our events were just over $20 million dollars in total volume, and any properties that were passed-in at the auction, were sold on average 15 days after the auction event.
I expect that in 2017 the Macarthur region will experience a plateauing market place, with slight property price growth in selected housing. Interest rates are still very low, even though the banks have slightly lifted rates prior to Christmas 2016. Economists are forecasting that rates will remain steady throughout the year, with the possibility of a rate rise around the middle of the year – regardless, rates will remain at record lows. The First Home Owner’s Grant is still in place with payments of $10,000 for eligible purchasers, along with zero stamp duty up to a purchase price of $550,000 (above $550,000 stamp duty is pro-rated). These government concessions will certainly continue to stimulate first home buyers to purchase.
First quarter of this year we are excited to be completing two of our major projects – The Collins building and the Evoke building in Tyler Street, Campbelltown. A total of 147 new apartments will be handed over to their owners.
In our property management business, I expect local vacancy rates to improve, with investment yield returns increasing towards the end of 2017.
Wishing you all a happy, healthy and prosperous year. Please do not hesitate to contact us with any of your real estate needs.