The Herron Todd White National Property Clock February 2017 has been released, showing which areas have reached their peak and which are just on the way up.
According to the clock, the NSW north coast is currently at the peak of its house market – Coffs Harbour, the NSW Central Coast and Newcastle are also listed as having reached their peak.
On the opposite side of the clock, at the bottom of the market are Darwin, Gladstone, Mackay, south-west Western Australia and Townsville.
The clock shows that in Herron Todd White’s opinion, the Perth, Alice Springs, Gippsland and Rockhampton housing markets haven’t yet hit the bottom; they are shown as approaching the bottom of the market.
Bendigo and Toowoomba are seen as starting to decline, while Melbourne, the Gold Coast, Ipswich, the NSW mid-north coast, south-east NSW and the Sunshine Coast are all seen to be approaching the peak of the market, which is no surprise due to the boost of development and investor interest in these areas.
Perhaps the most interesting parts of the clock are the rising market and start of recovery sections; Adelaide, Sydney, Canberra, Hobart, Ballarat, Bathurst, Burnie/Devonport, Cairns, Echuca, Launceston, Orange and Tamworth are all shown as being in a rising housing market – which may come as a surprise to those hoping the Sydney market has finally reached its peak.
Brisbane, Bundaberg, Emerald, Hervey Bay, Horsham, Mildura, Mount Gambier, Warrnambool and the Whitsundays are all shown to be in the start of recovery – and slowly rising their way up the market.
The unit clock showed a similar story: the NSW coast is also seen at the peak, but here Melbourne and the Gold Coast are also shown in their peak, while the much-discussed Sydney apartment market is still shown as a rising market.
Canberra and Perth are listed as declining, Alice Springs, Rockhampton and Gladstone are approaching the bottom and Adelaide, Darwin and south-west WA are all sitting at the bottom of the market, according to the unit clock.
Hobart, Bathurst, Bendigo, Launceston, Orange and the Sunshine Coast are all shown as rising markets, while Ipswich and the NSW mid-north coast are seen again as approaching their peak.
Other information in the report included a sage warning to off-the-plan buyers in the outer suburbs of Sydney, as prices on finished apartments are not meeting the expectations they were bought at in stronger market conditions.
The report also said that Epping, Macquarie Park and Parramatta could soon see a backlash against the large apartment developments in these areas and prices could be set to decline.
The Melbourne apartment market was another area marked with caution in the report, with the much-debated fears of oversupply raised which, if they prove correct, will not only cause a drop in value for these apartments but also impact rental income for investors.
According to Herron Todd White, it’s unlikely the Brisbane market will satisfy investors in 2017. After a less-than-impressive 2016, the report theorises it will continue to slow through 2017, however it does still say that the market is good for investors looking for buy and hold investments, as in a few market cycles Brisbane could be telling a very different story.