2020 Property Pricing Predictions: Who’s Making Moves?
New property pricing predictions point to strong growth for most Australian markets across 2020 and 2021. So, who’s best placed to take advantage of these increasing asset values? Read on below!
Spotlight on sellers.
The good news continues for Melbourne’s vendors with the release of Domain’s Property Price Forecasts report for February 2020. Domain economist Trent Wiltshire predicts that over the next few months, strong buyer demand will boost property prices, aligning with observations that property sales – which are closely linked to property prices – are rising again after hitting the lowest point in over two decades in mid-2019. At the close of last year, Melbourne’s median price sat at $901,951, which is predicted to rise 8% over 2020 and a further 3-5% into 2021. These figures follow Sydney, with a median price of $1,142,212, predicted to rise 10% in 2020 and 6-8% in 2021 and sit above Canberra, with a median price of $788,621, predicted to rise 4% in 2020 and 3-5% in 2021 (Domain).
These predictions are a positive for vendors and result from our current market environment – one that combines very low interest rates with strong expectations that these interest rates will remain low into mid-2020. Further drivers behind positive property predictions point to strong population growth, which continues to underpin the demand for housing. Looking to location, the highest number of new listings in December and January occurred in the inner city and outer suburbs of Melbourne, particularly the outer-east and outer-west suburbs (Domain). Vendors who aim to take advantage of this growth should ready themselves to meet the market.
Millennials embracing momentum.
First-home buyers have been the first to flex their muscles and engage with this momentum. Data from the Housing Industry Association (HIA) indicates that the Federal Government’s First Home Loan Deposit Scheme has already inspired confidence in newcomers looking to achieve their home ownership goals. HIA Chief Executive Industry Policy, Kristin Brookfield revealed that government data shows 34% of First Home Loan Deposit applicants are aged between 25-29, while 76% of applicants are aged between 18-34. This indicates that millennials are on the move, with 3055 first-home buyers taking the opportunity to purchase their starter home sooner. The scheme has also provided a boost to regional areas, with free standing homes the most popular purchase under scheme, suggesting people are buying existing properties, rather than starting from scratch (HIA).
Whether you’re a vendor, first-home buyer or making your mind up as you watch the market move, our team have plenty of insights to share. Get in touch today and we’ll get your property plans in motion.