The Australian property market which was of great interest for investors and sellers for many years has been struggling a bit over the past two years. Will the Australian house prices fall further? Or will they rise again? As we near the end of 2019, we are seeing some positive growth in the housing market. Let’s see what the Australian property market forecast for 2020 looks like.
RBA has cut the home loan interest rates to a record low of .75 percent in October this year which may boost the house prices again. This could mean there will be more activities happening in the real estate market with more money in the consumer’s pocket. If this is the case, the property market will be up again soon recovering from its losses in the past two years.
Australia’s housing market has already been seeing signs of growth towards the end of 2019. The national median house price has bounced back 2.7 percent to $773,635 in just the last quarter. According to various reports, most of Australia’s capital cities are expected to see growth in dwelling prices over next year although the rate of growth will vary in each city. Sydney and Melbourne are expected to lead the market again by recovering from most of their recent losses. This growth is mainly expected as a result of RBA’s interest rate cuts, APRA’s more relaxed home lending rules, and Australia’s ongoing population growth rate.
Even though this is good news for investors and sellers, we may still need to consider a number of other concerning factors such as low wages and high rates of unemployment when we talk about the Australian property market forecast for 2020.
To get an understanding of the value of your property, you can use our online valuation tool to get a free property value estimate as well as recent sales insights and market data on your suburb.
Let’s analyse what 2020 looks like for major Australian cities according to various reports.
Australian property market forecast in each capital city
Sydney property forecast 2020
Various factors indicate that the property values in Sydney are expected to have modest growth in 2020.
What the experts say
According to Domain.com.au, house prices are expected to increase by 3 to 5 percent over the year and unit prices by 2 to 4 percent in Sydney’s property market.
What our real estate agents say
Real estate agent Nick Makrinakis from Ray white has a relatively optimistic view of Australia’s most populous city in 2020 – “There’s a fair bit happening already within the market to ensure a steady 2020. With new developments happening around the area we are expecting a busy year ahead. The market is definitely picking up, and I am feeling confident about heading into the new year”.
Melbourne property market forecast 2020
Considering the opinions from experts and looking at the current market conditions, we expect the Melbourne property market is on its way to recovery in 2020.
What the experts say
ANZ senior economist Felicity Emmett is quite optimistic about Melbourne’s future in 2020. She expects a dramatic improvement from last year’s decline for Melbourne next year even though it won’t reach the same heights as seen in 2016 and 2017.
What our real estate agents say
Real estate agent Stan Coolegem from Biggin & Scott told us, “The market has improved over the last 6 months. House prices are increasing again and there are more buyers out there in the market. 2020 is looking optimistic already and we will be in for a busy year.”
Brisbane property market forecast 2020
Brisbane property market is expected to see positive growth in 2020 with apartments outperforming houses.
What the experts say
Moody’s Analytics indicates there is a growth of 2% expected for houses and 5.4% expected for apartments in Greater Brisbane.
What our real estate agents say
Real estate agent Trevor Hall from Richardson & Wrench told Local Agent Finder, “The market has been solid for the second part of 2019, with strong buyer interaction, especially from the owner-occupier market. We are expecting that to continue into 2020, as we have a lot of interstate and intrastate buyers moving to the Moreton Bay region. The main reason for buyers purchasing in this area is the continued growth of infrastructure and new housing estates, that give purchasers confidence that they are buying into a sustainable location that will continue to grow, as well as the central location and close proximity to the Sunshine Coast, Peninsular and Brisbane City.”
Perth property market forecast 2020
Perth is now one of the most affordable capital cities in Australia and there have been mixed opinions on Perth’s property market for 2020.
What the experts say
Moody’s expects a 0.7% decline in Perth’s house values in 2020 before seeing growth in 2021. This could mean 2020 is the right time for investors to make a smart move.
What our real estate agents say
Craig Small, the Director of Professionals Rockingham told Local Agent Finder,” We have been experiencing higher sales volumes and an increase in buyer activity during the second half of 2019 across the greater Rockingham area. There is also less available stock on the market for buyers to choose from and there are significantly fewer properties coming onto the market. We believe that prices in the local area have finally bottomed out, after a protracted downturn in the WA market. Conditions in the rental market have also improved dramatically and leasing activity has greatly improved. We expect that the local residential property market will continue to improve in the coming year and that we are likely to see gradual increases in property prices during 2020.”
Australian property market forecast 2020: In conclusion
Overall, the Australian property market forecast for 2020 indicates signs of a strengthening market. An experienced real estate agent will know the current market conditions and advise you of your next steps with regard to selling or investing. Buying or selling a home is a major financial decision and it is important to find a qualified real estate agent to guide you in each step of your selling journey. Local Agent Finder can help you compare agents based on performance data, sales history, fees, commissions, independent homeowner reviews and much more.
Wishing you all the best with your inspections in 2020!