Only one way for Ipswich property market, that's up
Chamber Talk, with Ipswich Chamber of Commerce president Brett Kitching
THE more bankers and members of the real estate sector in Ipswich that we speak to, the more we hear that the property market in Ipswich has only one direction to move - and that is up.
Most involved with the property market believe that Ipswich values have found the bottom of the cycle and cannot move too much further downwards. A recent survey supported this saying that a large percentage of property purchasers since 2008 have a mortgage higher than the current value of their property.
However with a growing population, the City of Ipswich will continue to need to provide housing, whether as owner occupiers or rentals. The yield on rentals at current house prices is generally far above bank interest rates making property investment in a growing city an attractive option, and setting prices at those levels with an attractive yield.
Most economists are expecting another Reserve Bank of Australia (RBA) interest rate cut on Melbourne Cup Day. If this eventuates, the interest rates will be at their lowest levels for several decades.
The combination of low interest rates with a growing population, developing city, and high rental yields sets the scene for an attractive investment in the property market. The important thing for the future of such an investment is the projected growth of the region.
The evidence of the growth of the City of Ipswich is on display in most places that you look at. Cranes over the CBD, continual growth in new housing estates, the growth in the aerospace precinct, and the development of industrial land in different areas around the city are all proof of the exciting future of the City of Ipswich.
The building and property markets are keys to economic strength and key to building and property markets is a growing population.
The big question is when will property markets increase as the drops in interest rates indicates a continuing sluggish Australian economy, and the RBA continue to warn of the future impact of global economic problems.
Taking into account all of this, it would seem likely that the bankers and real estate participants of Ipswich are correct in saying that there is only one direction that the Ipswich property market can go in future - and that is up. The question to be answered is not if it will happen but when.
- Suncorp Bank Business Leaders Breakfast: Friday, November 16, 6.45am-8.30am at The Ipswich Club. The guest speaker is Queensland cricketing legend Carl Rackemann. Members $44 and non-members $55.
- Ipswich Chamber of Commerce and Industry AGM followed by our final Networking After 5 event for 2012 - Tuesday, December 4, Ipswich Club starting at 5pm. Free for members.
- Bookings and payment in advance is essential for all events. Inquiries phone 32828688 or firstname.lastname@example.org.