Looking Forward in 2009 with Graeme Ingles

The year of 2009 is shaping up to be a tumultuous and difficult time for consumers and businesses alike.

The sharemarket is incredibly shaky, consumer confidence is at an all time low, interest rates are tipped to fall even further and there is a real concern the country will fall into recession. For Queenslanders, that uncertainty is added to with Queensland going to the polls soon. But on the flip side, the economy provides many real opportunities for those savvy and confident investors with available cash. It certainly looks like we are in for a rollercoaster ride during the next 12 months.

In our home state of Queensland, the Ingles Group expects property prices to stabilise for the short term. Although this will only be a short reprieve for buyers.  Due to the worsening global economy, the expected land supply will decrease dramatically over the coming years. In time, this will create a significant short fall of land in many areas which will inevitably result in property prices rising again. However, when this will happen only time will tell.

When this does occur the Gold Coast is a region we expect to perform strongly again. Whether it is the climate, the sun, the surf, the beaches or the booming economy, people are continuing to flock to the region.  The region’s amazing population growth and tight property supply has led to consistently strong price rises for the past seven years.  

As we predicted last year, we believe the northern growth corridor between the Gold Coast and Brisbane will continue to fuel the area’s growth.  Plans for giant town centre at Coomera, the shortage of good quality development land on the Gold Coast and the South East Queensland Regional Plan are driving the push north. Ingles Group, with four planned projects in the growth corridor, is well positioned to meet some of the demand for new communities.   

When the economy stabilises, the other region in Queensland that we believe will enjoy good growth in property prices is Ipswich . Voted the world’s most liveable place for cities with populations of between 75,000 and 200,000, Ipswich continues to grow from strength to strength. And, whilst properties in some areas of Queensland are starting to look expensive for investment purposes, the suburbs around Ipswich are still among the most affordable in South East Queensland.   

We wish you all the best with property decisions in 2009. Good luck and happy hunting.