Swapping the flip-flops for shoes has been a bit of a change this week. But what didn’t change, whether my toes were in the sand or on the bitumen, was people asking: “What do you think the market will do this year?”
Trying to pick a market is usually a fruitless exercise. Instead consistency in investing is what offsets the peaks with the troughs. I know that advice doesn’t sell papers, pardon the pun, so here are some thoughts.
Lifestyle locations like the beach, the bush or the bay, are enhanced at holiday times because of the increase in population and the romance of a holiday home. Instead, when you’re back, if you are looking at an area, holiday rental or otherwise, asses whether there is likely going to be an infrastructure improvement or some other driver that will result in a surge in the local population. For example, Queens Wharf being launched in Brisbane and the new bridges to the City should see an uplift in apartments in the botanical gardens precinct of town and neighbouring Kangaroo Point.
I believe the new bridge link to Kangaroo Point against it’s lagging price point, will see that suburb lift in 2023. Similarly, Woolloongabba is having a major facelift, as is Toowong with the Aviary development now underway. This will create ojbs and see some major improvements to transport. Both are suburbs to watch.
Finally, my gut tells me that renovators and first home buyers will be strong this year. I think units should move well for the first six months. Renovators should also see a strong surge from first home buyers and interstate home buyers, both keen to jump in to the DIY market.
- Haesley Cush is an award-winning auctioneer who has called more than 10,000 auctions. He co-owns Ray White New Farm, East Brisbane, Bulimba, Spring Hill, Toowong, Clayfield and Living Here Cush Partners.