By the end of 2020, it’s expected Sydney house prices will rise by 10 per cent to a new median of about $1.25 million, while apartments will rise 8 per cent to a new median of $790,000, according to the latest Domain Property Price Forecast – 2020 report released recently.
The report predicts that Sydney will have the strongest growth, surpassing it’s previous peak prices of 2017, before June 2020, while Melbourne and Brisbane will also continue to grow with an estimated 8 per cent price growth for each city.
The report is basing it’s price growth predictions on a number of market factors including continued very low interest rates, strong population growth along with a slowdown in new housing and apartment construction supply. The new First Home Loan Deposit Scheme is also having a positive effect on price growth. We also saw stronger than expected price growth late in 2019 and with just about every institution and bank predicting property price growth for 2020, the Fear Of Missing Out (FOMO) will also have a positive effect on prices as buyers and investors decided to jump back into the market to beat the forecasted price rises.
One new development, that’s making global news, the recent coronavirus outbreak in China may have a downward effect on prices here in Australia if the Chinese economy slows rapidly, especially in Brisbane and Perth as these markets are exposed the most to the Chinese economy.
House Price Forecast
|Median House Price Dec 2019||2020||2021|
|Australia (Combined Capitals)||$809,349||8%||5-7%|
Notes: Stratified median house price forecast. Forecasts are the annual percent change from December quarter to December quarter. Darwin excluded. Source domain.com.au
Unit price forecast
|Median Unit Price Dec 2019||2020||2021|
|Australia (Combined Capitals)||$565,024||6%||3-5%|
Notes: Stratified median house price forecast. Forecasts are the annual percent change from December quarter to December quarter. ‘Units’ include units and apartments. Darwin excluded. Source domain.com.au