It is good to be cautious in dealing with the real estate market because it is expected that the values ​​of some sites will be lower than inflation over the next three years. In addition, one out of every seven real estate markets in Australia is expected to contract by 2022, according to an analysis of the new proptech platform, Sell or Hold.
Given the uncertain state of the real estate market, Jeremy Sheppard, head of research, emphasized the importance of knowing when to sell or hold. Owners and investors have become accustomed to a "buy and never sell" mentality, which can cost them money, he said.
"Research has shown that nearly 860 markets in the country are on the verge of falling prices over the next three years, with a combination of results in capitals and regional suburbs, and excess supply constituting only part of the story. . Although every owner or investor needs to understand his or her particular financial situation before deciding to sell or hold, this data shows us that blindly waiting for a market recovery might not be the smartest financial decision, "he said. said Sheppard.
The study also found that about 40% of the real estate markets in Western Australia were classified as bad. Next comes the Northern Territory, with 39% of its markets falling in the same category.
The markets of Queensland (17.6%) and New South Wales (13.2%) are also expected to decline over the next three years.
"We chose the basic comparison with inflation to show that housing located in these markets is not worth keeping for growth reasons because they are worth less than what they are worth. They are today in real dollars, which means that some people might be better off selling in order to take advantage of the opportunities offered by other markets, "Sheppard said.
Sheppard pointed out, however, that while the data provided for price reductions in specific dwellings at these locations, there are still hundreds of markets where prices are expected to increase over the same period.
The key to success? Understand if it makes more sense to keep or sell.
Identification of Emerging Markets
The type of housing and suburb whose value was most likely to fall were the homes located in Blackwater, in western Queensland, with prices likely to fall by 5.2%.
The vineyard of the Blacktown area in Sydney has been designated as the second largest market. Housing prices are expected to fall by 3.7% over three years.
House prices in Leppington and Villawood in Sydney are also expected to fall over the same period.
The Cockburn Central houses in Perth also joined the list as they are expected to fall by 3% during this period.
"I know that predicting bad real estate markets is not popular, but in the end, homeowners and investors need to be aware that some markets will languish for years. It may be futile to wait for better days, "said Sheppard.
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