In December of 2012, Property Observer went to the experts to ask for their predictions for 2013. While crystal ball gazing is notoriously difficult, especially when property is concerned, LJ Hooker deputy chairman Janusz Hooker’s insight was remarkably accurate.
PREDICTION: Luxury market to recover first
LJ Hooker deputy chairman Janusz Hooker says a recovery in the housing market is “inevitable”, with the luxury high-end market expected to be the first to enjoy price recovery having been hit the hardest by the downturn. His advice to property investors is to “look for places that went down the most and also watch the big cities – when they move it fans out to the regions usually within six to 12 months”.
THAT PREDICTION WAS CORRECT:
The prestige market above $1.5 million to mid-year 2013 was one of the strongest earlier performers, with properties in the most expensive suburbs seeing 4.8% growth to June 2013, compared to slightly softer results in the middle and lower brackets. This may have been partly due to the surge of Chinese buyers in suburbs such as Mosman. However, properties in excess of $3 million were far slower to perform. The bulk of the growth happened in the latter half of 2013, which then saw the middle market outstripping prestige sales.
Chinese buyers in Mosman:
Prestige agents have noted the stars have well and truly aligned for Asian buyers wanting to invest in Australian residential projects.
The most recent development has been the introduction of “golden ticket” visas aimed at fast-tracking wealthy Asian investors’ entrance into Australia with a provisional four-year visa followed by the opportunity to apply for permanent residency.
The new Significant Investor Stream Visa (as it is officially known) requires an investment of at least $5 million in state or territory bonds; an ASIC-regulated managed investment fund; or a direct investment in an Australian company, which would include investments in commercial property backing a business such as a hotel or lodge.
The visa allows immigrants to skip skilled migration requirements such as being proficient in English and requires immigrants spend a minimum of just 40 days a year in Australia over the four-year visa period.
There is also no upper age limit, and the main applicant does not have to meet the business points test.
For more information regarding Chinese buyers within the Lower North Shore of Sydney contact our office, (02) 9969 1500 or search through our website.
For more predictions like the above for 2013 visit the article here.
Source: Property Observer & other