Know the Game

Posted by Daniel Joseph

The Origin decider is just over 24 hours away and league statisticians are busy compiling data on the players in anticipation of the big game. The national property market, too, contains many players, and understanding the position in which they play is key to investment success.

In the position of full back we have Brisbane, coming from behind and poised to make a burst. The Brisbane property market is below its previous cyclical peaks and is forecast by BIS Shrapnel to be the strongest performing capital city over the next three years.

Our centre for the game is Sydney who, having scored a few tries today is due for a stint on the bench. The last time the Sydney market had a run like it is now having resulted in a four year spell on the sideline (2004 to 2009 correction where prices declined by 13 per cent).

Our utility players are Melbourne and Perth, both of whom have the ability to play in several positions. These players’ profiles are diverse and unpredictable: strong metres gained one week with softer results the next. The Melbourne market is heavily segmented, with suburbs like Collingwood, Fitzroy and Richmond now transitioning into the opportunity phase of the property cycle. Generally speaking the Perth market is mid-correction, although corrections have historically been brief; some micro regions within close proximity of the CBD still exhibit opportunity.

South Australia, Tasmania, Canberra and Darwin are stuck in the blood bin, and it doesn’t look like they’ll be making a recovery any time soon. The first three of these markets are characterised by weak economic conditions and poor population growth. Darwin is afflicted only with the latter of these price constraining factors. In the bin they remain.

In the front row we have those single industry towns characterised by short bursts then stints on the bench. For example, mining dominated regions like the Pilbara, where prices made a break in 2011 increasing by 30 per cent, only to fall short before the line (recently, prices have declined by 34 per cent).

The coach of the team is Blue Wealth Property, analysing every move each player makes in anticipation of the next line break. In the investment game it pays to get professional advice, and the soundest advice comes from those who know the players best.

Go the Blues.

Posted by Daniel Joseph, on 7th Jul 2015