What 2017 Has In Store For The Real Estate Industry
With the new year in full swing, we look at what 2017 has in store for the real estate industry. What will the property market do, and how can you best tackle these conditions as a real estate agent? Here is everything you need to know about this year’s job prospects, approved dwellings, property trends and Queensland hotspots.
1. Future Job Prospects
The good news is, it’s a great time to be starting a career in real estate. From now until 2020, the number of real estate sales agent openings is expected to be well above average, with a predicted 25,000 to 50,000 new openings nationwide during this period. These job openings include both employment growth and turnover. What’s more, employment for real estate agents will continue to rise over the next 10 years. As such, it’s predicted that unemployment in this job category will remain below average. Real estate agents also have an above average proportion of full-time jobs, with 81.5% of those employed working in full-time roles. With such a great outlook, if you’re considering becoming a real estate sales agent, now is the perfect time to gain your qualifications at Validum Institute and start your new career.
2. Volume of Construction Projects for Dwellings Approved
It’s predicted that this year’s number of dwelling approvals will be similar to last year. With New South Wales’ enormous 70,400 dwellings starting construction last year, and Victoria coming in close second with 66,500 constructions, Australia’s residential dwellings soared in 2016, and this trend looks set to continue. Whilst the last quarter experienced a 2.8% fall, resulting in an annual dwellings approval decline of 4%, nationwide approvals totalled 229,336 in the 12 months to September. Of this, 111,000 were multi-units, 116,000 were houses, and the remainder were dwelling conversions. These figures suggest that with dwelling approvals remaining strong over the last 12 months, an apartment oversupply may be experienced this year. However, dwelling approvals are expected to moderate to around 212,000 this year, which may level out demand and supply towards the end of 2017.
3. Property Market Issues and Trends
The top issues and trends expected to impact the Australian property market this year include Trump, Brexit, interest rates, housing demand, and Chinese property investors. With 2016 bringing Trump and Brexit, it’s predicted that their effects will be felt this year. This will result in continuing global political uncertainty, which may negatively impact the Australian economy. As well, it’s likely that banks will continue to restrict lending by raising their rates. That’s because, with the current low-interest rates, banks feel less pressure by the RBA’s monthly decisions. However, it is predicted that the RBA will now keep interest rates stable this year. High housing demand also looks set to stay. With demand being high nationwide, the surge in the number of people looking for properties will continue, which will no doubt put added pressure on the property market. Finally, demand from China for Australian property is predicted to strengthen this year. Chinese developers and buyers will continue to invest in new apartment developments, mainly in the east coast’s capital cities, which is good news for our economy.
4. Hot Queensland Suburbs For 2017
Despite Queensland’s sluggish economy, low population growth and impending apartment oversupply, its property market looks set to undergo some growth this year. According to the experts, Queensland suburbs heating up in 2017 include Gordon Park, Taringa, Mermaid Waters, Sunrise Beach and Maroochydore. As Brisbane’s smallest suburb, Gordon Park’s easy CBD access and surge in trendy cafes make it a great spot to invest. Similarly, Taringa continues to offer good value with its increase in first-rate amenities. Despite this suburb’s property prices rising 10.2% last year, they are expected to rise even further this year. Coastal suburbs, Mermaid Waters, Sunrise Beach and Maroochydore, are all undergoing makeovers in terms of residential renovations and new infrastructure. Close to or right on the water, these hotspots offer great value with their mix of waterfront and non-waterfront living amenities. As well, Brisbane suburbs Paddington, Ascot, Wooloowin, New Farm and Clayfield are hotspots to keep your eye on as all are experiencing increased construction this year.
There is certainly a lot in store for the real estate industry in 2017. As a real estate agent, you should keep across these predicted industry issues and trends so you are prepared for whatever market conditions the new year brings.
If you’re looking to become qualified in the real estate industry or upskill your real estate qualifications, call Validum Institute TODAY on (07) 3193 5270 to find out more about our fresh new blended approach to learning.
We’d love to know what you think is in store for the real estate industry in 2017. Email me your thoughts at victor.james@validumgroup.com.au.
