Home values in Australia's biggest cities are on course to surge this year according to research house Corelogic, as low mortgage rates and easier lending standards unleash buyer demand.
CoreLogic sees home prices in Melbourne rising by as much as 14 per cent.
They forecast Sydney property values could increase by up to 12 per cent.
And Brisbane property values could rise 10% in 2020.
Following the largest property market decline since CoreLogic started keeping records in the early 1980s, and in which capital city dwelling values fell 10.2 per cent over 21 months, the markets have rebounded strongly in the second half of 2019, particularly in Sydney and Melbourne where the falls were the greatest.
Clearly our 2 big capital cities are playing catch up, and at this rate will reach new peaks by the middle of the year, and are then likely to continue rising but at a slower pace.
Tim Lawless, Head of Research at Corelogic, believes that in 2020, it’s unlikely we’ll see such a rapid rise in capital gains as seen throughout the second half of 2019 despite the expectation that mortgage rates will move lower over the first half of the year; several factors are likely to act as counter weights to this stimulus.
- Also read:Sydney property market forecast for 2024
- Also read:What makes an A-grade property?
- Also read:Latest property price forecasts for 2024 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:Here’s how to avoid these 12 common reasons property investors fail to build a Multi Million Dollar Property Portfolio
- Also read:Boom to bust: What makes property prices rise and fall
With housing values rising faster than household incomes, worsening housing affordability is likely to deliver a slowdown in activity across price sensitive segments of the market, especially in Sydney where dwelling values were already 8.2 times higher than gross annual household incomes half way through the year.
A rise in investors, attracted by prospects for capital gains and a positive spread between mortgage rates and rental yields, should help to offset a reduction in activity from more price sensitive buyers, according to Lawless.
Here's how you could take advantage of the property markets in 2020.
If you're looking at buying your next home or investment property here's 4 ways we can help you:
Sure our property markets are improving, but correct property selection is even more important than ever, as only selected sectors of the market are likely to outperform.
Why not get the independent team of property strategists and buyers' agents at Metropole to help level the playing field for you?
We help our clients grow, protect and pass on their wealth through a range of services including:
- Strategic property advice. - Allow us to build a Strategic Property Plan for you and your family. Planning is bringing the future into the present so you can do something about it now! Click here to learn more
- Buyer's agency - As Australia's most trusted buyers’ agents we've been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective - that's something money just can't buy. We'll help you find your next home or an investment grade property. Click here to learn how we can help you.
- Wealth Advisory - We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
- Property Management - Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.