Property market tip: No fear in the regions
"FUNDAMENTALS contradict the fear mongering”, according to Australian property market commentator Simon Pressley.
Writing in his property industry newsletter, Propertyology, Mr Pressley said regional areas of Australia had in some cases experienced property price rises of "boom proportions”.
"There's a growing list of influencing factors which collectively equate to the strongest property market outlook that many parts of Australia have seen for more than a decade,” he said.
"Property markets in parts of regional Australia have already experienced property price growth of boom proportions in 2018 and we expect that to continue for some years yet,” he said.
Mr Pressley called for financial industry regulators to return to "sensible credit policy” and said this would happen "before too long”.
"There's every chance some capital city markets will see double-digit growth, too,” he said.
And he adds that this could be within the next two years.
Mr Pressley advocates the counter-intuitive, saying investors needed to think outside of conventional wisdom, even in dangerous times.
"One would be wise never to rely on the consensus in property,” he said.
"The consensus view is also based on the here and now, with an apparent lack of understanding of how underlying fundamentals might shape things just over the horizon.”
Mr Pressley says many commentators are "forever guilty of gross generalisations”, with a consensus view that "regional Australia has a weak economy and no real prospect for property price growth”.
But in regions with positive fundamental influences, such as Gympie with its proximity to Brisbane and the Sunshine Coast, it is a different story, he wrote.