A leading broker has said brokers need to start reconnecting with their database now, as the property market is set to slow in 2016.
John Manciameli, principal of Sydney-based brokerage Hunterwood Solutions, said he expects the capital city property markets will pull-back next year.
“The last 100 years have shown that property markets, particularly in capital cities, tend to rise and then go sideways,” he told Australian Broker
“I definitely expect the property market will start to plateau next year. Let’s not forget there will be growth, but it will be more sustainable.”
This means brokers need to start reconnecting with their existing client databases now, according to Manciameli, to insure their business in a market slowdown.
“This is one of the best times for brokers to reconnect with their data base,” he told Australian Broker
“A lot of their clients – and I am speaking from Sydney and Melbourne in particular – have got a lot of equity, so a lot of clients are looking for guidance. Therefore, there may be reason to suggest talking to clients about using that equity to help with other aspirations they may have, for example, investing, debt consolidating and renovating.”
However, Manciameli doesn’t believe a property slowdown will open up the market for first home buyers.
“I don’t think a slower market will mean more first home buyers. I think it will simply mean first home buyers will continue down the path of renting and investing – and again, I am stressing Sydney and Melbourne.
“A lot of first home buyers will still not be able to afford a million dollar mortgage, so they will be a lot more inclined to continue to rent in suburb they can’t afford right now, but invest somewhere else, such as Brisbane.”
According to Manciameli, Brisbane will take the lead as the property hotspot in a cooler market.
“Ninety-five per cent of my investor clients are looking at the Brisbane market. Brisbane currently has the second highest yields in the country, it is arguably the infrastructure capital of the country and it is only now just starting to accelerate in capital growth,” he told Australian Broker
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