The Australian property market will be resilient in 2011, despite facing a number of challenges and negative sentiment among commentators, according to Monique Sasson Wakelin, managing director of Wakelin Property Advisory.
“The general cautiousness about the property market will be a boon for buyers,” Ms Sasson Wakelin said on the weekend.
“The flat second half of 2010 for prices has conditioned observers to think that the property market is on a downward trend. This misconception will be capitalised on by the astute investor, who will be better prepared to pick up quality properties within their budget.”
According to Ms Sasson Wakelin a range of fundamentals are underpinning the market.
“The Australian economy remains robust, GDP is growing again after the lull of the GFC, net immigration is high, inflation is low, and unemployment is falling. The strong dollar and terms of trade means Australians are reaping a wealth effect, which will flow through to the housing market.”
Whilst Ms Sasson Wakelin predicts Australia’s capital cities to average modest growth, some areas will do better than others.
“I believe Sydney will perform better than average. The city has lagged other capitals in recent years after strong growth in the early noughties.
“A renewed confidence following the almost-certain change of state government in March, coupled with improving conditions for the financial service industry, will drive decent single digit growth for Sydney.”
Perth is likely to reverse the losses of 2010 in 2011, Ms Sasson Wakelin said, while Adelaide and Melbourne would retain modest growth patterns.
Brisbane could be the weakest performer in 2011, Ms Sasson Wakelin said.
“Even without the floods, I expected that Brisbane house prices would struggle in the face of falling tourism in Queensland. After the floods, I think it is inevitable that many Brisbane households will be adversely affected financially and a fall in prices is likely.”