Valentines Day – Regional Real Estate Romance Continues

Despite all the doom and gloom centered around the Australian Real Estate Slow Down, Regional Real Estate continues to maintain a trajectory of growth into the next decade. 

Albeit now at a slower rate, the Mid North Coast in particular is in a steady expansion phase to accommodate the ever-increasing “capital city refugees” seeking to resettle for a better life in rural regions out of the hustle and bustle. 

The temporary market paralysis that always occurs leading up to elections is palpable at present. Particularly in light of us being in the political positioning phase of approaching State and Federal elections. 

The NSW State Government Election is scheduled to be held on Saturday March 23rd. 

The next Federal Election must be held by 18 May 2019 for half of the Senate and on or before 2 November 2019 for the House of Representatives and Territory Senators.  

The fall out of the recent Banking Royal Commission is being rapidly digested and in many respects, the banks had pre-empted what would be discovered and what would be required to satisfy Government, Markets and Consumers.  

In that regard, the adjustment to new lending parameters will edge into place with real longer-term benefits for the banking industry, financial markets and borrowers. 

The pain of these changes should ease as real estate prices normalise

The upshot is that whilst major capital city real estate prices have cooled considerably, the rural and regional real estate prices have generally not been as adversely impacted, with future growth prospects optimistic. 

In the immediate term though, property owners need to accept the fact that the market is well “off the boil”. 

The fundamentals of supply and demand will apply and if you are selling and buying in the same market, the real change to the equation is negligible.

Business as Usual

Drew Oliver 

Principal –  Regional & Rural Realty