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Why I’m still bullish on residential property prices

07042021_Property prices

Why I’m still bullish on residential property prices

Across Australia, property prices are on a tear, driven for a change by owner-occupiers rather than investors. What’s more, I’m convinced that prices have much further to run, fuelled by low interest rates and supportive government policies.

And if I was to offer a more nuanced view it is that houses will do a little better than apartments, simply because of the lack of people requiring a rental, itself due to a dearth of overseas students, a lack of immigration and ultra-low fixed rates that favour owner-occupiers.

Our thesis that property prices would rise in 2021 is because property investors were a protected species they could therefore buy with confidence. Few others in 2020 believed property prices in Australia would rise, but admittedly the bulls were overwhelmed by the bears, some of whom believed prices would collapse by a quarter or even a third. And some of these forecasters worked for the banks!

Today’s property market drivers remain largely unchanged.

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INVEST WITH MONTGOMERY

Roger is the Founder and Chief Investment Officer of Montgomery Investment Management. Roger brings more than two decades of investment and financial market experience, knowledge and relationships to bear in his role as Chief Investment Officer. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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