Australian Property News
Australian property market back in favour
Posted on Tuesday, July 27 2010 at 4:42 PM
Favour is once again swinging in the direction of property as a more secure investment choice than other alternatives, according to RE/MAX Australia regional director Nicholas Thiele.
Thiele says Australia is especially well placed to benefit from a shaky international economy.
“With the continued uncertainty in markets around the world, homeowners and property investors will look to the traditional safe havens of property as a secure store of wealth,” he says. “The prominence of Australia as one of the few world market ‘darlings’ continues to rise. Therefore one would speculate that our strongest asset class outside of the resource sector, such as residential property, will continue to be an attractive and favourable alternative.”
Many investors will look to switching asset classes or alter their risk exposure and pursue lower but more ‘secure’ returns, Thiele suggests. “And although we are well positioned, investors and homeowners alike will need to readjust expectations. The markets we have now are likely to be the norm for the short to medium term.”
Thiele notes that his observations about the current economy, together with anecdotal evidence from local RE/MAX agents, indicates that confidence in the property market will grow during the second half of the year and into 2011. “In any investment environment people require a degree of certainty and regardless of the winner in the upcoming Federal Election, Liberal or Labor, markets will again thaw.”
Thiele says Australia’s property market in particular currently offers a number of opportunities for good rental yields and capital growth over the long term.
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