Forecast on 2019 Australian Property Market
2019 is almost just a month away, and for buyers and investors, it’s important to look ahead. Analysts have already studied what’s going to happen in 2019 when we talk about the property market, and according to reports made by NAB, ANZ, Westpac, SQM, and BIS a lot could change.
The property market condition or state in Australia this year has been quite challenging. One of the early predictions is about the property prices in the major cities such as Sydney and Melbourne, which will continue in 2019 but will slowly stabilize before the end of the year. In 2020, property market prices are expected to rise. The downturn in the market can be said to be an effect due to several reasons. One of which is the unexpected unit development surge. The change in mortgage borrowing is also seen as a contributor and the rising interest rates. There’s also the matter with the softening of house prices.
According to the SQM research, although there are expected declines, a housing price crash is unlikely because the economy is healthy, and the unemployment is low. The growth in population is also strong in Australia. Interest rates are at an all-time low which makes it a lot easier for investors to venture into the property market. The median house price forecast in 2019 are expected to decrease but smaller compared to the decrease that has happened this year.
Here are some predictions for the main cities in Australia in terms of median house price:
The expected median house price for next year is $1,120,000, while for the median unit price, it’s $755,000. In the past decade, Sydney has experienced a growth unlike any other. Sydney is considered to have the highest median house price at $1.14M, however, during the past year, a decrease was experienced that is expected to carry on until next year but experts say that it will improve late next year.
As for the median unit price, it is predicted to still experience a decrease that’s carried out from this year. It is expected to stabilize in 2020.
The expected median house price for next year is $915,000, while the median unit price is about $540,000. At the end of 2017, Melbourne reached their peak and experts predicted the price to stabilize until the year 2021. There will be 2% increases yearly as predicted by market experts and will be below levels of inflation. New dwellings will be seen because of the construction levels that are expected to increase.
As for median unit prices, many banks predict a decline in median unit prices in 2019 until 2020 but will stabilize during the latter part of 2020. Major banks are seeing the same trend.
The expected media house price for next year is $575,000 while the median unit price is predicted to be $395,000. House prices in Brisbane are also expected to increase next year all through 2021 due to several factors like the growth in population, increased jobs and low unemployment rates. Brisbane is also seen as a top city for relocation.
In terms of median unit prices, there’s also an increase in unit supply and increase in construction rates. However, in 2019, it is expected to experience some decrease after the 5% decrease that was experienced this year.
The current predictions are normally done by experts in the market, and if you are looking into buying or selling, it is incredibly helpful to be aware of these predictions while being open to changes.