With unemployment rising, interest rates falling and government spending up big on infrastructure, 2020 is the year of opportunity in property, writes Property Expert and Lefta CEO Steve Chandler.
With all these factors coming to bear on the property markets across Australia we’re likely to see increased property prices, even with higher unemployment.
Due to low, and possibly even lower, interest rates and pent up demand from the recent property market slump, this will stimulate property developers to restart the projects that have stalled.
This will increase employment in the construction sector again, which has been declining causing the unemployment levels to rise recently.
The government’s infrastructure spend will also stimulate employees in the infrastructure sector to buy products and services, perhaps including property, providing demand for property and creating jobs in the construction sector.
When you consider the results that the property market has delivered in the past 6 months, particularly with the interest rates falling, it is difficult to see how a recovery cannot be sustained over 2020.
As people in Sydney come to terms with the changes to improve consumer protection for new apartment purchases, the residential apartment market in Sydney is set to recover strongly, perhaps leading the way for a strong 2021 too?
Whilst the bushfires have, and continue to, cause havoc and devastation on a massive scale, the economy will recover strongly as the various levels of government reinvest billions of dollars into replacement infrastructure and insurance companies also pump potentially billions of dollars into rebuilding people’s homes and critical farm infrastructure.
Unemployment in these devastated communities will also fall as a mini infrastructure and building boom occurs in 2020 and potentially beyond. And with additional labour being sourced from the cities to undertake these works, demand for property in these locations will increase substantially, causing their own mini property boom.
2020 certainly is the year of opportunity in property.
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