Feeling Trumped? Feeling Beaten? Confidence is lacking in Australia and whilst not totally responsible some of the press are to blame.
Now we don’t want to talk about Fake News, but poor or distorted reporting of what is actually happening in the property market, especially in Brisbane of late, is sapping confidence from the marketplace. And confidence is what is lacking around Australia at the moment. When people don’t feel confident everything is affected, markets, jobs, personal lives … everything.
Many people are in wait and see mode and just hold back from making decisions and if the media is their primary source of information then we can’t blame them. But lack of confidence is affecting the jobs and lifestyles of Australians everywhere. This lack of confidence, we think, is leading to people actually putting their lives on hold while they wait and see what happens.
As an example of how media commentary can distort reality and lead to falling confidence we have attached the links to two articles. These articles, written about 6 months apart both comment on the commercial property market in Brisbane. The headlines of these articles, which is all some people read, suggest in the case of the first article that the market is facing a doom and gloom scenario and puts the fear of God into people about what is going to happen in that market. The second article shows that the context of the first article was not correct and that vacancy rates have actually fallen. Clearly this should be a confidence booster but people have every right to feel confused. If the issue wasn’t so serious it might be funny but this kind of reporting destroys confidence and has a real impact on what happens in the market.
Article number one
Article number two
I actually had an email from one of our clients asking me what I thought about the first article when it came out. Clearly the article had unsettled my clients, as you would expect it would, and it did affect their confidence when they were considering an investment. Many people regret not having taken the steps to actually invest earlier in their lives when the time horizon was greater to allow the growth to occur through the cycles we know always happen.
It is obvious that everyone can get anxious when they read negative press even if the story is not correct. I replied to my clients that things were not always as they seemed and that they should consider the fundamentals of the marketplace and certainly not what is just written in the press. If they were going to make any decision, then that decision should be made on the facts and genuine market research. Making any decision to purchase a high value product should be a long-term decision based on facts and not something that is based on sentiment.
The issue that I have with the types of articles linked above is that what many people read is their reality. This is affecting confidence across a broad spectrum of the Australian population who are just looking for and willing for a sign that tells them that everything is going to be okay. Well it is going to be okay and we can all play our part by going out to dinner with friends to help the restauranteurs, by buying clothes if we need them of course, by buying a new car if ours needs replacing, by taking a holiday if we haven’t had one for a while because life is a journey and it shouldn’t be put on hold while we wait and see. And yes of course by investing, whether that be shares or property or anything else that will help you to prepare for your life in the future.
The Sydney and Melbourne residential markets have been performing strongly for the last couple of years and new population growth figures provided by the Australian Bureau of Statistics suggest that the Melbourne market still has some wind in its sails. The residential property market in Brisbane is just beginning to show some small green shoots, nothing that we can get too excited about yet but notwithstanding is the precursor to a general uptrend in property prices in that city. When it comes, there will be an uplift in property prices in the Brisbane residential market that is long overdue. In fact, in the last few weeks, Brisbane, despite it not being a city where auctions are the predominant method of taking a residential property to the market, has had its highest auction clearance rates in some time., A sign perhaps?
Our job as specialist real estate agents is to research the market and to find opportunities where the growth still has not happened as it has in other markets but all of the data shows that the growth has yet to occur. No one including us can guarantee the timing and size of any future market uplift but we do know that the uplift is coming. Those of us who are already invested in the market will gain by not selling and holding on for a little longer. Those who have not purchased yet will find the pricing and choice of properties available now provide a much easier market to enter than will those who wait until prices are again rising strongly.
Australia is a wonderful country and those of us who are lucky enough to have been born here or moved here from other parts of the world basically have won the jackpot. Population growth in Australia is continuing unrelentingly and the property market, especially the residential property market has a wonderful and long term outlook.
It is in times like these that most opportunities exist to enable you to take your time to buy something that will assist in providing that lifestyle in retirement you had always dreamed about. You must of course be cautious and do your homework. We’re very good at homework…. why not let us help?