INTEREST RATES, STRONG EMPLOYMENT PROSPECTS, A STRONG ECONOMY AND TIGHT SUPPLY OF NEW HOUSING WILL ENSURE PRICE GROWTH IN 2019
SYDNEY, 12 February 2019 – Australia’s leading residential property developer Crown Group is confident of solid growth in property prices in 2019, buoyed by strong economic fundamentals and tight supply of new homes and finance for developers.
Crown Group Chairman and Group CEO Iwan Sunito said he expected confidence would win amongst investors and homebuyers in 2019 in Australia, because underlying economic factors were still sound.
“This year we will see a resurging confidence in the Australian residential property market,” he said.
“All the fundamentals are there for growth and buyers are looking to the horizon. Firstly, the economy is still very strong – we’ve had world-record consistent economic growth for 28 years, averaging about 3 per cent a year. AUSTRADE Sep 2018
“There is still a lot of wealth in Australia and people have strong employment prospects. The unemployment rate is at a historically low 5 percent (ABS Dec 2018) and we are set for a massive wage growth catch up to match the economic growth we have had consistently for nearly three decades.
“This will deliver a greater degree of buying power. Interest rates are at the lowest they have ever been, with the Reserve Bank leaving the cash rate at 1.5 percent in December 2018 (RB is expected to announce next interest rate tomorrow, 5 Feb 2019), and inflation remains low and steady at 1.8 per cent.”
Mr Sunito said Crown Group had been developing high-end apartment projects in Sydney for 22 years and had seen the costs of development increasing year by year, with no signs of decreasing soon.
“This will continue to put upward pressure on apartment prices,” he said. “The cost of borrowing for developers has gone up, the cost of construction materials is rising and the speed of getting projects off the ground is slower. It is taking longer to meet the demand of presales that the banks require, which adds pressure to holding costs.
“Also, there is limited land available in key Australian cities for development projects, which tightens up supply. As a result, we expect we will see apartment prices continue to climb in 2019 – with single digit growth – for property in the right location and the right development.”
Mr Sunito said it was always a good time to buy if people chose the location and development carefully.
“People are always asking me, when is the best time to buy?” he said. “The answer is always the same: 20 years ago. The lesson is that you can never choose the wrong time to buy, if you choose in the right location and buy for the future. The reason is that you can never replace what you can build today at the same price, the cost of building something new will always go up.”
Crown Group is currently completing four major residential apartments projects in Sydney. Residents are preparing to move into the sell-out apartment development Infinity by Crown Group, with its famous looped façade, at Green Square in coming months. The lush and tropical Waterfall by Crown Group is also nearing completion at Waterloo. And construction has started on Mastery by Crown Group, the $500 million Japanese-inspired community being developed with Mitsubishi Jisho Residences at Waterloo. Eastlakes Live, the most exciting new address in the Eastern Suburbs is in planning phases.
Crown Group Chairman and Group CEO Iwan Sunito is available for interviews on request.
Images & video
Images and video are available upon request including artist impressions, photographs of display apartments and computer-animated ‘fly-through’ footage of selected Crown Group developments.
Natasha Granath, PR & Communications Manager at Crown Group
(02) 8904 7051
Lina Guo, Communications Executive at Crown Group
(02) 9925 0088 or 0429 459 510
About Crown Group
Crown Group Holdings (Crown Group) is a leading Australian property group specialising in property development, property investment and serviced apartments. The company was co-founded by architect Mr. Iwan Sunito and engineer Mr. Paul Sathio with its first project in 1996.
Crown Group has successfully completed major developments in Sydney’s best locations including Bondi, Bondi Junction, Parramatta, Ashfield, Epping, Homebush, Newington, Pennant Hills and Rhodes and most recently the 28-storey V by Crown Group in Parramatta.
Today, Crown Group boasts a $5bn portfolio of projects under development and in the pipeline and is currently developing four major projects in the Sydney area: Infinity by Crown Group in Green Square; the $500 million five tower precinct Mastery by Crown Group in Waterloo being developed with Mitsubishi Jisho Residence; Waterfall by Crown Group in Waterloo; and Eastlakes Live the most exciting new address in the Eastern Suburbs.
Crown Group launched its first SKYE Hotel Suites in Parramatta in August 2017 and SKYE Suites Sydney in October 2018.
Crown Group has been awarded more than 30 high-profile industry awards including the 2018 UDIA NSW Best Mixed-Use Development and 2016 International Property Awards Best Residential High Rise Architecture Australia for V by Crown Group Parramatta; 2017 Property Council of Australia’s Annual Property Congress’ one of the World’s best projects for Infinity by Crown Group; 2017 Master Builders Association (MBA) NSW Excellence in Construction Awards for Skye by Crown Group, 2015 International Property Awards Best Residential Development Australia for Arc by Crown Group, 2015 Master Builders Australia (MBA) NSW Excellence in Construction Awards for Viking by Crown Group Waterloo and 2014 Urban Development Institute of Australia (UDIA) NSW President’s award – considered one of the highest property development accolades in Australia – for the seven-tower, resort-style development Top Ryde City Living.Download the original article