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Running half-naked down George st Sydney, is no one’s cup of coffee. However, I will be doing the run; if less than four of my property predictions don’t come to pass from now until the end of 2016.
Presently, I feel confident that my predictions of the local real estate and property market, are not mere glances into a foggy crystal ball. I believe there is a lot of evidence and trends that will keep me fully clothe next year.
However and unfortunate for some, if my predictions are predominantly on point; most investors will find themselves being caught with their pants down.
My ten observations but not necessarily in order
1: Sydney’s rental vacancy rate will rise beyond 2.5% from the first quarter onward, in 2016.
2: Apartments will drop in value by 10-20% in suburbs such as: Parramatta, Hurstville, Campsie, Lidcombe, Auburn, Penrith, Liverpool and Mascot. As well as some surrounding suburbs.
3: Real Estate Agents will be taken to the tribunal for “over-quoting” as the property market turns and sales don’t achieve vendor’s expectation. Expectations promoted by the real estate agents that list the property for sale.
4: More developers will go broke than we have seen in previous property-downturns.
5: There will be an investigation launched by Banks on:
Undisclosed rental guarantees that have not being disclosed in contracts of sale.
6: Sydney will see rental/yield drops, by as much as 15%-25% and this as early as mid 2016.
7: Construction and building defects, due to bad workmanship, will be a hot topic in 2016.
8: Property Investors that bought property through SMSF vehicles, will be suing:
Mortgage brokers and
All because these professionals advised on off-plan apartment investments that will fail and most of these professionals don’t have real estate licenses, but receive commissions.
9: Developers will be offering:
Furniture and car packages as incentives for people to buy new apartments due to the oversupply of apartments being completed, in most cities along the East-coast.
10: Auctioneers will be contracted at half the price they charge now as real estate agents and vendors return to:
Sale by private treaty as auction demand drops.
These are my 10 predictions and observations. Some people may say and believe I’m overly-confident. But, I put these out so more people can take note of what really is happening in the property arena.
Furthermore, I work on the field, research the local market and look at economic factors that have a strong influence on our local property market. So let’s see if I end up running down George street half naked or no
Sydney Real Estate and Property Predictions 2015-2016 Edwin Almeida,