The Rethink – 2016/17 Property Activity Intentions Report
The annual Newcastle Property Activity Intentions Report produced by Rethink Financial Group highlights the strong confidence Novocastrians have in the local economy and property market.
Local Property Demand at a Record High
At a recent local property workshop hosted by Rethink Financial Group, 100% of attendees told Rethink they plan on making a property transaction within the next 12 months. This is up two and a half times (245%) from 29% when the first Property Activity Intentions Report was produced three years ago. At the same event two years’ ago only 66% of attendees intended on making a transaction.
Large Disparity Between Demand and Supply
Although Newcastle property prices are at an all time high (2016 median house price $495,000), 90% of the intended transactions in the next 12 months are purchases. This is up 20% from the last intentions report, where 75% of transactions were intended to be purchases.
While, demand is high, supply is low, only 10% of the intended transactions are sales.
High Confidence in Property Market
Of the intended property purchases in the next 12 months, the majority of these are likely to be investments (83%). Investor activity is up 8% on two years’ ago and 24% on 2013. Only 17% of the potential purchases in the next 12 months are likely to be made by owner occupiers.
About the Property Activity Intentions Report
This report is designed to support buyers, sellers and investors in getting an insight into the possible direction of the Newcastle property market. It is the buyers and sellers that ultimately decide the price of a property, so we ask local peers (buyers, sellers and investors) to share their intentions around property over the coming twelve months hoping to get a snapshot of what’s to come.
*This report is purely based on intentions and is by no means to be relied upon as an actual predictor of property activity, prices or the market direction.