Most of Australia’s capital cities have started the year on the right foot, outside of Sydney and Melbourne, where average growth has started to plateau after years of exceptional gains.
First home buyers are back out in force taking up 39 per cent of new housing sales in the December quarter and about a quarter of all home sales. There are claims that this is the direct result of increased stamp duty increases for foreign residents, in addition to many states giving first home buyers some stamp duty alleviation. This is allowing more room for first home buyers to enter the market.
Arguments to eradicate negative gearing took a hit after an RBA-commissioned study found that the impact of ending negative gearing would be minimal, cutting property prices by only 1.2 per cent and lifting rents “marginally” while increasing home ownership.
A global survey from the Association of Foreign Investors in Real Estate has ranked our market in high favour – Australia ranks as the fifth safest country globally for investment, dropping from fourth spot in 2017. Despite the “expensive” prices, there is clearly still a strong argument for property investment fundamentals across Australia.