WHATS AHEAD IN AUSTRALIA'S PROPERTY MARKET FOR 2020
The end of the year is nearing once again. For some, this means holiday celebrations and vacations but for some, it’s time to look into the condition of the real estate market once again. So let’s see what 2020 has in store for all property owners, sellers, and investors in Australia:
What’s In Store For Us In 2020?
The next two years will see a perk up in property prices, according to the 2019 August CoreLogic Home Value Index. The increased certainty about housing taxation, easing of credit standards and the rate cuts of the Reserve Bank of Australia are said to be the reasons for this pickup. These will bring back more buyers, and with them, sellers who withdrew due to low prices. This growth will be supported by employment growth as the Reserve Bank is also working towards a lower unemployment rate and higher wages.
This pickup is already evident in Sydney and Melbourne, where the majority of the activity is happening, with the improved auction clearance rates and the return of monthly dwelling value growth.
Price Forecasts
Here are some figures from Domain’s mid-year report.
House Prices Forecasts
|
City |
2019 (six-month change) |
2020 (annual change) |
|
Australia (combined capital cities) |
1% |
2% to 4% |
|
Sydney |
2% |
3% to 5% |
|
Melbourne |
1% |
1% to 3% |
|
Brisbane |
1% |
3% to 5% |
|
Perth |
0% |
0% to 2% |
|
Adelaide |
1% |
1% to 3% |
|
Hobart |
0% |
2% to 4% |
|
Canberra |
2% |
4% to 6% |
Unit Prices Forecasts
City |
2019 (six-month change) |
2020 (annual change) |
Australia (combined capital cities) |
1% |
1% to 3% |
Sydney |
2% |
2% to 4% |
Melbourne |
1% |
0% to 2% |
Brisbane |
0% |
0% to 2% |
Perth |
0% |
0% to 2% |
Adelaide |
2% |
1% to 3% |
Hobart |
2% |
3% to 5% |
Canberra |
1% |
1% to 3% |
Queensland
Let’s look at our home state Queensland in particular.
Most of Queensland’s towns and cities will see an increase in house and unit prices. Cairns’ house prices will increase by 3.4 per cent. Gold Coast will see 5.5 per cent increase, a huge improvement from the -1.8 per cent of 2019. Sunshine Coast will experience an increase of 1 per cent.
How Can You Stay Ahead?
There are ways you can stay ahead of the curve and get the best prices.
Stay In The Know
Check updates in the major factors in property prices - the local and international economy, interest rates, population, employment rates, and the like. In short, read the news!
Research Local Prices
You should research the current price trends in your area or surrounding neighbourhoods. This will tell you where the biggest demand is. Check if the prices are going up faster in one neighbourhood than in others. Then, see if the average home price is higher than in other neighbourhoods. This will also help you analyze if the prices in the areas are “fair” or overboard. This will come in handy if you are a buyer who’s looking for a property in the lowest price possible.
Look Out For The Fringes
If the major towns and cities are in high demand, surely the outskirts of these areas will soon be in demand as well, especially areas near a bus or rail line. Check out if a local bus or rail line will be expanding their services in an area - ask them or the local town hall.
Check For Major Changes
If there is some development of new infrastructure in an area, that is a sure sign of an up-and-coming area. Soon enough, this area will be attractive to homebuyers. You might want to capitalise in these kinds of areas.
Seek Expert Property Advice
Get the advice from someone with knowledge about the area you want to buy properties in and updated with property trends and changes. They should also have knowledge about property appraisal. For the investors, have someone who can give you sound advice on property investments and proper property management.
It seems like good things are ahead for us! Let’s all hope that conditions will pick up and improve even more in the next years! For sound property and investment advice, you won’t have to look far - we’re here to assist you! With years of experience, knowledge, and the true desire to help clients get the results they want, we can give you a capable helping hand. All you need to do is reach out!
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