Several industry experts have voiced their opinions on what they are expecting from the property industry in 2017, and the lessons learned from 2016.
Secret Agent Buyer Advocates director, Paul Osborne
“Last year was another stellar year for property owners liquidating their assets in the marketplace. Low holding costs have reduced quality offerings for some years now as competing asset alternatives (bonds, shares, fixed income, etc) offer limited returns and incentivise owners who just sit and hold.
“A trump presidency, local employment conditions, capital controls imposed from Beijing as well as a tightening in local banks attitudes to investors and developers will impose headwinds in 2017. This long bull run will end and the unknown is whether 2017 will be the year that it concludes. And whether the manner will be in the form of plateau or correction.
“Appetite is still robust for inner city dwellings close to lifestyle, transport and employment. Downsizers are using their strong cash balances to outmuscle younger demographics and we expect more of this to come in the year ahead.
“Overall, a strong start to the year expected with rising stock levels set to put that strong start under some strain.”
Kokoda Property marketing and sales director, Sam Tucker
“There are many lessons to be taken from 2016, yet the most significant was the overwhelming movement and evolution of a much more discerning buyer, both investor and owner-occupier alike. Savvy buyers now expect a much higher level of quality and amenity within developments, which underpins longer term capital growth and the lifestyle appeal for downsizers and quality tenants.
“We experienced unprecedented sales, despite the negative sentiments being touted by the media across most capital cities. This has heightened the need for leading edge through (in some cases international) interior designers and architects, which strengthen the value proposition and appeal to a wider market.
“In 2017, our developments will strive to offer a higher level of amenity and designs inspired by some of the best hotels and architecture around the world.”
CHT Architects director, David Carabott
“Last year was an important lesson learned for developers – in particular, that speed to market is really critical. Today, you have to get your planning permits and sell in the same market you purchased in. That means working with a team that is quick and efficient to allow you that speed.
“2016 also saw a change in purchaser aspirations and a shift in market to owner-occupiers who are looking for design excellence, quality, location and amenity. 2017 will see continued reliance on greater amenity within developments and an emphasis on the reputation of those working on the process, from architects and builders to agents. This is especially important for owner-occupiers.
“The last part of 2016 was unsettled due to planning uncertainty with the introduction of new guidelines, the Better Apartment Design Standards. In 2017, it’s essential that industry members understand and incorporate those standards into all of their residential work.”
This is the last of a two-part series. The first part can be read here.