<\/p>\n
We back track with Josh Masters<\/strong> and check his report card of 2016 predictions.<\/p>\n <\/p>\n Kevin:<\/b>\u00a0 Another one of the experts we checked in with this time last year was Josh Masters from BuySide buyer\u2019s agents.<\/p>\n Good day, Josh. Nice to be talking to you again, and Happy New Year.<\/p>\n Josh:<\/b>\u00a0 Good morning, Kevin, and to you.<\/p>\n Kevin:<\/b>\u00a0 Actually, we\u2019re pretty well into the New Year, but it\u2019s never too late to say Happy New Year.<\/p>\n Josh, let\u2019s just play a portion of what you said this time last year, and then we\u2019ll come back and check in with you.<\/p>\n Josh: <\/b>\u00a0I think we\u2019re still going to see the momentum from Sydney carrying through. While Sydney has had that very, very strong growth \u2013 and even Melbourne, as well \u2013 we\u2019re still going to see probably 5% to 7% growth over the period as that markets slows down. There\u2019s still some money left in there. I think we\u2019re also going to see a rise in premium homes, let\u2019s say above $1.5 million, probably in Sydney and definitely in Melbourne.<\/p>\n From an investment point of view, we\u2019re going to see probably a lot more influence from those APRA regulations. What we\u2019re probably going to see is a trend through 2016 to those affordable markets with stronger yields. I do see that Brisbane market and even the Gold Coast market through some of the infrastructure projects that are going in there. It\u2019s been flat for so long. It\u2019s a very affordable market especially compared to a lot of the eastern coast cities.<\/p>\n I think we\u2019re seeing a lot of strong yields there, which are 5.5%, 6.5% there, which are really going to be attractive for investors through 2016. I think coupled with infrastructure projects from Toowoomba to Sunshine Coast down to the Gold Coast, I think that\u2019s going to be a real hotspot coming up in 2016.<\/p>\n Kevin:<\/b>\u00a0 Back live now. Josh Masters, they were your comments this time last year. There were probably a couple of surprises, but maybe we could just replay that again next year and that might be what you might think about 2017. Is that a fair comment?<\/p>\n Josh:<\/b>\u00a0 Look, Kevin, I think it pretty much is a fair comment. There were definitely a few surprises. I think everyone\u2019s jaws have stayed on the ground watching the Sydney and Melbourne markets continue to go very, very strongly.<\/p>\n 5% to 7% growth coming into last year was well under the mark, but to be quite honest, that\u2019s four years of solid growth now. I think it\u2019s definitely unprecedented and we\u2019ll probably see that sort of growth, if not less, for the Sydney and Melbourne markets \u2013 definitely in the investor side of it but probably also with owner-occupier markets coming into 2017.<\/p>\n Kevin:<\/b>\u00a0 Yes, and it\u2019s no wonder, too, that the state government in New South Wales is talking about ways to make property more affordable. Who would have thought that that growth would continue. In fact, I don\u2019t think I\u2019ve spoken to anyone who said what we\u2019d seen in the last year \u2013 2015 \u2013 was going to help continue in 2016. So who knows what\u2019s going to happen in 2017 with Sydney.<\/p>\n Josh:<\/b>\u00a0 Yes. Look, I think the affordability piece is definitely still on our radar. I mentioned that around the Brisbane market, and I think in particular pockets, we\u2019ve definitely seen some solid activity and we continue to look up there because the yields are so good as well, and I definitely there\u2019s some good infrastructure projects coming up that way.<\/p>\n But we\u2019ve also seen some solid activity coming into the Hobart markets, the Canberra markets as well, particularly for the home sector because of that affordability. Hobart is almost going gangbusters now in terms of vacancy rates being so low, rental yields being very high, and capital growth as well, even though it is quite a small market.<\/p>\n I think that those affordable states will definitely be the outperformers as people are looking to put their money into the property market but simply can\u2019t make it over the large hurdlers that are the Sydney and Melbourne behemoths that we see today.<\/p>\n Kevin:<\/b>\u00a0 Yes, quite a number of the people that we\u2019ve spoken to, probably like you too, have been a little bit disappointed with the growth that came out of Brisbane. I think everyone thought that 2016 was going to be Brisbane\u2019s year but it just didn\u2019t really\u2026 Although in fairness you can\u2019t really compare with what continues to happen in Sydney, Josh, can you?<\/p>\n Josh: <\/b>\u00a0No, but you do have to be careful of using the same brush to tar the whole city and the whole state. There are definitely pockets within the Brisbane market that have been outperforming, particularly in the owner-occupier stock.<\/p>\n I know the banks have favored owner-occupiers since the APRA regulations came in a couple of years back. They were offering discounts or at least normalized rates, so we were seeing those quality homes close to the city in the $600,000 to $700,000 bracket doing very, very well. That was hitting 8%, 9% year-on-year and that\u2019s nothing to shy away from.<\/p>\n But overall, yes, the state and the city, in particular, has definitely been dragged down, I think probably from the low unemployment rates and the low economic activity. The mining was always going to be a drag on it until we see the job numbers picking up in that state and the money starting to flow back in. I think we are starting to see a little bit of net migration flow back into Queensland now. I think that will be the catalyst for the rises to come that I think everyone\u2019s been waiting for for some years now.<\/p>\n Kevin:<\/b>\u00a0 Okay. Fast forward this time next year. What are you going to be saying in 2018 about 2017?<\/p>\n Josh:<\/b>\u00a0 It\u2019s always been a red flag for me for the last couple of years, but I think we\u2019re definitely going to see some impact of oversupply in the unit sector, particularly for Brisbane and Melbourne. I think we will see those prices starting to hit home hard and there will be some discounts in that sector of the market.<\/p>\n The smaller states, where we have affordable stock \u2013 Hobart, Canberra, and look, fingers crossed for Brisbane as well \u2013 definitely down that more affordable end at the median price point or just under, I think we will see some activity there.<\/p>\n I think Melbourne and Sydney have definitely got to slow down. I think we\u2019ll probably see them really staying static at the end of 2017. I actually foresee probably the same as BIS Shrapnel for the next one to two years following that \u2013 at least some very, very flat growth for those two larger states.<\/p>\n Kevin:<\/b>\u00a0 Josh, always good talking to you, mate, and we will talk to you as the year rolls on. Josh Masters has been my guest. Josh\u2019s website is BuySide.com.au.<\/p>\n Josh, thanks for your time, mate.<\/p>\n Josh:<\/b>\u00a0 Thanks, Kevin. Have a great year.<\/p>\n","protected":false},"excerpt":{"rendered":" We back track with Josh Masters and check his report card of 2016 predictions. Transcript: Kevin:\u00a0 Another one of the experts we checked in with this time last year was Josh Masters from BuySide buyer\u2019s agents. Good day, Josh. Nice to be talking…<\/p>\n","protected":false},"author":176692473,"featured_media":8467,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,10,11,13,36,17,27],"tags":[101],"class_list":["post-25327","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-property-topic","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-property-investment-topic","category-property-investment","category-trends-topic","tag-podcast"],"yoast_head":"\nTranscript:<\/strong><\/h4>\n