“Unnecessary fear” of housing market

by Rebecca Pike10 Oct 2018

According to some property insiders, now is the perfect time for smart investors to take advantage of buying opportunities.

With a slowing property market and tightening of credit criteria, many have considered whether a crash is on the horizon.

But First Media director Na Yu said predictions of a 40% drop in prices have created “unnecessary fear”.

She remains confident ahead of the group’s upcoming property expo, saying fear generates buyer interest.

Chief economist of My Housing Market, Dr Andrew Wilson, is one of the key speakers at November’s Australian Property Expo.

He said instead of the exciting times we might have seen in the housing market, this time “get ready to be bored”.

“Prices aren’t going to collapse,” he added. “The fundamentals of the market are solid. Employment and migration are still strong, yields are holding, and while capital growth may be a bit slower your money is as safe as houses.

“It makes exciting headlines but the reality is there’s nothing driving the prices down at the moment apart from the fear of fear itself.

“I think once you move out of spring and into Autumn next year there’ll be a realisation, there’ll be a much more certain and predictable housing market.”

According to Wilson, the prices are only falling in the highest priced properties.

He said, “In fact in Sydney the market in the lower north shore and the eastern suburbs are clearly recording strong auctions. When you measure the medium it looks like it’s fallen, but we just don’t have the same property mix as a year ago.”

He said smart buyers will be able to “shrug off negativity and make the developer work for their sale”.

“It’s a good opportunity to question developers at the moment because developers have to move their stock,” he added.

The Australian Property Expo opens its doors in Sydney on November 3 and 4.

Yu said it was “the ultimate event for serious property investors who watch the sector closely”.

Apartments, townhouses, house and land packages, luxury homes and land will be available at the event.