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Writer's picturepeterward4

Ascientials Update APRIL 2024


Family relaxing at the lake

In this edition

  • Newcastle: Hi-tech hub

  • Economists expecting interest rate reductions

  • Australia's resilient dwelling price growth

  • Proptrack Home Price Index results - March 2024

  • Off the property track...

 
Postive and negative gears

Newcastle: Hi-tech hub

Newcastle Airport's evolution continues with the recent proposal for a high-tech development in the Astra Aerolab Precinct.


The development, which is part of a larger $250-million upgrade including the airport and surrounding facilities, is a key component in the region's transformation, reflecting its growing importance in the aerospace and defense industries.


Informed property investors have always known that there's a risk associated with investing in regional markets because their economies are based on one main industry or another. It's the classic 'mining town' argument. If the dominant industry folds, the local economy is in trouble. With Newcastle it was originally steel (until BHP packed up and left Australia), and is now coal.


It's very early days, but the new airport and hi-tech hub could well be a step toward Newcastle sufficiently broadening its diversity of industry and commerce to reduce the risk for property investors. It will probably take at least a couple of decades before the risk might be mitigated, but is definitely a step in the right direction.


 

Economists expecting interest rate reductions


The RBA is hedging its bets, but university economists and Moody's economist agree with our forecast that interest rates will likely begin to fall mid-year.


 

Australia map with pin at Perth

Australia's resilient house price growth

Despite economic challenges, Australia's housing market remains robust, with high dwelling prices and a competitive rental market. This resilience is attributable to a range of factors.


For those interested in a closer analysis, Matusik explains in his recent article.


 

George Titch - genius on economic cycles

PropTrack Home Price Index results - November 2023

Perth continues to perform with an annual growth rate YTD of over 18%, a median house price $100k below the national average, and nearly $200k below the capital city average.


 


Off the property track...


This month, from Visual Capitalist:


Enjoy...


 




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