METRO VS REGIONAL AREAS
Question: In this phase of the market, capital cities seem to be doing much better than regional areas. Why?
Answer: There are a number of factors at play but I think it largely comes down to the fact that the capital cities are where most of the jobs are and the economies tend to be much more diversified than in non-capital city markets. As a result I think we are seeing much higher levels of consumer confidence in capital city markets as opposed to regional housing markets. Related to this, the mining areas are being impacted by the peak in investment with demand for workers much lower during the output phase and tourism areas are still being affected by the high Australian dollar.
UPPER END MARKETS
Question:
Answer: The top end of the market until recently was the weakest sector in terms of capital growth. This has begun to change recently and over the three months to October 2013 it has actually been the best performing sector. What you typically find in market growth phase is that it tends to start within the lower priced sector of the market and eventually filters through to the higher end properties. This is what we are now seeing and I expect that with interest rates likely to remain quite low we may see it maintained for some time yet.
The expert: Cameron Kusher - Cameron Kusher is the senior research analyst with RP Data.
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Disclaimer: The views provided are of a general nature and should be considered as general information only. This is not financial advice and it is not to be acted upon without advice from a qualified professional who understands your personal circumstances.
