July 2017 was the high point for the residential market in the Lower North Shore. Two years later and down about 15%, there is a consensus that we are now at, or close to, the bottom. Rents have declined by about 5% so far this year. Subdued wages growth and low inflation, combined with a slight oversupply of new units are the major influences on the current rental market.
The significant drivers for a property price increase are: fewer sellers than usual, poor returns and higher risk for alternative investments, plus very low interest rates. In the opposite direction, we have restrictive bank lending, perceived worldwide political and economic uncertainty and a general lack of confidence. It’s probable these factors will largely cancel each other out and home values will be relatively static for 2019 and into 2020. It’s a market where both selling and buying are good decisions.
To view the sales results in your local area, click here: http://bit.ly/suburbsalesresults