Credit to original source: Urban Developer
Property prices in Australia are set to surpass peak levels over 2020 as the robust turnaround across the nation’s biggest markets continues to gather pace.
House prices across capital cities are forecast to surge by up to 8 per cent over the next 12 months, with Sydney and Brisbane leading the way, reveals new research from property platform Domain.
Domain’s forecast, which has doubled figures released in June of last year, also expects price growth to remain moderate over 2021.
Sydney, which regained almost two-thirds of the value lost during the 18-month downturn over the last two quarters, has continued to witness positive growth following the markets bottoming out in May of last year.
Sydney house prices are expected to grow at the fastest rate of any capital city, tipped to surge by 10 per cent over the year.
The forecast would push the median price to $1.25 million—5 per cent above the peak reached in June 2017.
Sydney’s unit prices are also set to rise by 8 per cent to $795,000, a 1 per cent increase on the peak level reached in 2017.
House price forecasts
| City | Median house price Dec 2019 | 2020 | 2021 |
|---|---|---|---|
| Sydney | $1,142,212 | 10% | 6-8% |
| Melbourne | $901,951 | 8% | 3-5% |
| Brisbane | $577,664 | 8% | 7-9% |
| Perth | $537,013 | 5% | 3-5% |
| Adelaide | $542,947 | 3% | 2-4% |
| Hobart | $530,570 | 3% | 2-4% |
| Canberra | $788,621 | 4% | 3-5% |
Domain economist Trent Wiltshire said low-interest rates and the expectation that interest rates will remain low will be the key drivers of rising property prices in 2020.
“Prices rose rapidly in Sydney at the end of 2019, particularly in higher-priced areas, with this momentum continuing into 2020.”
“Strong population growth, a slowdown in new housing construction, low levels of listings and the First Home Loan Deposit Scheme will also contribute to higher prices.
“Rising market sentiment and a jump in buyer demand, shown by rapid growth in mortgage lending and also more people viewing property listings, will also push up prices.”
Melbourne’s median house price is forecast to rise 8 per cent in 2020 and then by 3 to 5 per cent in 2021.
This will mean Melbourne’s median house price reaches around $970,000 by the end of this year and will hit the $1 million mark by the second half of 2021.
The result, if achieved, would place Melbourne’s house prices 10 per cent above the recent peak of $909,000 reached in December 2017.
