Sydney and Melbourne will drive the rises. The forecast is for Sydney to rise between 10% to 14% and Melbourne 11% to 15%. Other cities are also expected to record price rises.
As a result of the improved international outlook and an existing recovery in mining investment, the city of Perth will finally record price rises next year after a prolonged housing downturn. The forecast is for Perth dwelling prices to rise between 3% to 6%. Brisbane will also benefit from the recovery in mining investment and should also record price rises in the order of 3% to 6%.
Darwin is the only city expected to record price declines. The forecast of for prices to fall between -2% to -5%, as the Darwin economy continues to struggle and excess stock for sale continues to weaken the local market.
Louis Christopher, Managing Director of SQM Research said, "The Sydney and Melbourne housing markets have recorded a sharp turnaround in the 2nd half of 2019 following on from the surprise result of the Federal Election, interest rate cuts, the loosening of credit restrictions and ongoing strong population growth rates. These factors are expected to drive the national housing market into 2020. In a close call, APRA is expected to not immediately intervene despite the strong price rises.
"However we have some misgivings on the sustainability of this new recovery. Sydney and Melbourne are rising from an overvalued point. Long term, our two largest housing markets look vulnerable and forever reliant on cheap credit. Housing debt, while falling compared to GDP over 2019, is still very high. Better value can definitely found elsewhere such as Perth and Brisbane", said Christopher.
SQM Research also anticipates an ongoing recovery in the Brisbane and Perth rental markets in 2020. While Sydney, will still likely record a fall in rents for the 3rd year running.
Christopher's Housing Boom and Bust Report this year also has a full breakdown of every postcode in the country covering current market statistics and its postcode investor ratings. The full report can be found on www.sqmresearch.com.au for only $59.95.
Debra Beck-Mewing is the Founder and CEO of The Property Frontline. She has more than 20 years' experience in property investing, Australia-wide and has used a range of strategies to build her property portfolio including renovating, granny flats, sub-division and development. Debra is skilled in identifying development opportunities, and sourcing properties that have multiple uses and multiple exit strategies. She is a Qualified Property Investment Advisor, licensed real estate agent and also holds a Bachelor of Commerce and Master of Business. As a passionate advocate for increasing transparency in the property and wealth industries, Debra is a popular speaker on these topics. She is also an author, podcast host, Editor in Chief of Property Portfolio Magazine and participates on numerous committees including the Property Owners' Association.
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Disclaimer – This information is of a general nature only and does not constitute professional advice. We strongly recommend you seek your own professional advice in relation to your particular circumstances.
