Powered by MOMENTUM MEDIA
subscribe to our newsletter
SMSFs warned on looming property ‘tough times’

SMSFs warned on looming property ‘tough times’

Reporter
11 July 2016 — 1 minute read

One independent Australian research house has cautioned SMSF investors on the “tough times ahead” for the residential property market over the next two years, and outlined the best shot investors will have at capital growth.

According to BIS Shrapnel’s senior manager of residential property Angie Zigomanis, all Australian markets are expected to flatten in the next two years.

With the price pressure of the stock deficiency of recent years being steadily alleviated, all markets are expected to weaken and bottom out over 2017-18 and 2018-19, with house prices in largely flat or in decline over this period,” he told SMSF Adviser.

“At the same time, the change in gears from resource investment to domestic demand driving the economy continues to be slow and economic growth nationally is muted. Without a substantial acceleration in economic conditions, employment and income growth will also be slow,” he said.

Mr Zigomanis said the best prospects” for median house price growth over the next three years are expected to be in Brisbane and Hobart, followed by Canberra.

In Brisbane, affordability has improved significantly after weak price performance, although an excess supply is emerging in the apartment market,” he said.

While an oversupply is estimated in Tasmania overall, Hobart appears to be in deficiency, being the focus of migration from the rest of the state and from the interstate. This should support some modest house price rises.

Meanwhile, the interstate outflows from the Australian Capital Territory are easing, and with relatively high incomes in Canberra, this should be able to support some house price growth.”

 

SMSFs warned on looming property ‘tough times’
smsfadviser logo
join the discussion

Do you think the government should reinstate the accountants’ exemption for SMSF advice?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

In this month's issue:

  • Time wrap
  • The tech bull run
  • From hobby to passion
  • Golden Years
  • An untimely reminder
  • Why change is so difficult
  • Key Strategies for equalising super