Many economic commentators are predicting a further softening of the Australian dollar over the next six months, and whilst this is not welcome in some sectors of the economy, ie importers; it is very welcome news in other sectors, in particular tourism, property and exporting industries.
It has been widely reported that a decrease in the value of the Aussie dollar will assist in stimulating foreign investment in Australian property, especially from China and Malaysia. A lower dollar makes our property cheaper to purchase and therefore a more attractive investment option, providing of course, our economy remains strong and robust.
The lower dollar combined with historically low interest rates, renewed optimism in growing regions such as the Sunshine Coast (on the back of the massive hospital infrastructure program), and also the predictions that Housing Industry Association (HIA) chief executive officer Graham Wolfe made this week that Australia is on target to face a housing shortage by 2020…all bode well for the health of property investment.
There is a lot of positivity in the marketplace from buyers and sellers, this is reflected by increased media coverage about a ‘recovery’…we are seeing the beginning of it right now; and the timing for buying and selling is almost in equilibrium, probably still slightly tipped in favour of buyers, but stock is moving, and is there are not as many choices. In time, when demand outstrips supply we will start to see an increase in prices, but for now it is a healthy market for both buyers and sellers.
