As China continues to struggle enforcing its zero-covid policy, the rest of the world continues its path towards pre-pandemic normality. Many countries are now open and no longer actively enforcing many of the strict border rules. Inflation continues to be high around the world; the result of excessive stimulus packages and measures during the past 2 years. With the cash rate now at a tipping point, have we seen the bottom of the property prices in Australia?
Despite the stubbornly high inflation rates, there are some signs that the bottom for the property prices could be near. Indicators are now pointing to the possibility that the peak inflation may now be behind us, and as the rate hike continues at a slower rate, demand for property may be around the corner.
With the exception of China (and possibly Hong Kong and Taiwan), borders of countries are now fully open. There is already been an influx of overseas visitors and a small population surge in Australia after a record stale period since 2020. Demand both for rental and properties will naturally rise with the increase in population, which sets a positive outlook for the real-estate market next year with further growth in 2024-2026.
The latest data points to likely bottom of property prices in Q1/Q2 2023, as demand on all fronts pick up, supply chain problems ease, and rate hike slows. Although there are still lingering problems in the supply chain and construction industry, there’s hope that the worst is over.
It is never too early to plan out your next build or renovation. Take advantage of the uncertainty and the improving stability to ensure works are carried out in an efficient and controlled manner.