Would you like to know where house prices are going to be at the end of this year and next year?
Today, I’ll share the latest forecasts from Domain, and we’re going to run through them state by state and explain what might make them better or worse depending upon what happens in our economy.
Then in my mindset moment, I’m going to show you how you won the lottery.
Today’s episode contains a lot of numbers and figures, but I think the trends that I’m going to explain will give you some comfort.
What’s Ahead for Australia’s Property Market?
Remember, it wasn’t that long ago that our media was predicting housing market Armageddon. The property pessimists have again been proven wrong. Having said that, this has been the longest and the deepest property downturn in modern history.
Remember there is not one property market nor one Sydney or Melbourne property market, but having said that, Trent Wilshire, economist for Domain, forecasts that property values are likely to stabilize in the capital cities by the end of the year, and in fact rise in some locations, and he predicts moderate growth in 2020.
Forecast for the Sydney property market:
- House and apartment prices will be 2% higher by the end of 2019
- In 2020, house prices will increase by 3 to 5%
- Apartment prices will rise by 2 to 4% in 2020
- About 25% of home loans in New South Wales in March went to first home buyers
- Prices of off-the-plan and new apartment in high rise towers Sydney are likely to fall
Forecast for the Melbourne property market:
- House prices have fallen about 11% since their peak, and apartment prices have fallen about 8%
- Prices are likely to increase by about 1% by the end of 2019
- In 2020, house prices will increase by 1 to 3%
- Apartment prices will rise by 0 to 2% in 2020
- Melbourne’s population is predicted to rise by 10% in the next few years
Forecast for the Brisbane property market:
- Housing prices will bottom out in the next 6 months and rise by 1% by the end of this year and 3-5% in 2020
- After bottoming out apartment prices in Brisbane will remain flat next year.
- Brisbane’s fragmented market means that some areas will rise faster than others
Forecast for Canberra
- House prices will rise by 2% by the end of 2019
- Apartment prices will rise by 1% by the end of 2019
- Canberra will be the strongest property market in 2020
- House prices will grow by 4 to 6% in 2020
- Apartment prices will be subdued by the oversupply of apartments
- Apartment prices will grow by 1 to 2% in 2020
Forecast for Perth:
- Prices will bottom out over the next 6 months
- After prices bottom out, there will be slow growth
- Perth will see 0 to 2% growth in 2020
- Perth will see a rise in population growth
Forecast for Hobart:
- Hobart has been the best performing property market in the last 3 years, but the boom is over
- Hobart will not see any growth in housing for the rest of 2019
- Apartments will grow by 2% in Hobart by the end of the year
- There will be 2 to 4% growth in Hobart house prices in 2020
Forecast for Adelaide
- Adelaide property prices continue to rise slowly
- Adelaide will see 1% growth for houses in 2019
- Adelaide will see 2% growth in apartments in 2019
- In 2020, Adelaide’s housing prices will rise by 1 to 3%
Links and Resources:
Metropole’s Strategic Property Plan – to help both beginning and experienced investors
Some of our favourite quotes from the show:
“Remember, Melbourne is rated as one of the 10 fastest growing large capital cities in the developed world.” –Michael Yardney
“Property prices are driven by investors in particular.” –Michael Yardney
“Entitlement gets us nothing but heartache. It blinds us to the magic of gratitude.” –Michael Yardney
PLEASE LEAVE US A REVIEW
Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes – it’s your way of passing the message forward to others and saying thank you to me. Here’s how
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.