Residential property price growth cut across market predictions and is expected to improve throughout 2020 and beyond. ANZ and NAB housing reports find key improvements nationwide. First home buyers are tipped to dominate sales numbers.
According to the latest housing report by ANZ, housing prices will improve throughout 2020 and until 2021. The major bank said prices could rise 8 per cent on average this year and 4 per cent next year. ANZ is now expecting solid growth from now on house prices nationwide. Savills also reported the same findings noting that the “true winner” of interest rate cuts in 2019 is the housing market because it resulted in “abnormal” price growth.2020 is off to a great start after picking up 2019’s strong finish in housing values. Record jump in house prices was recorded by CoreLogic for the December quarter. 4 per cent increase, it was the largest increase in a decade and the fastest gain since November 2009.
NAB’s Residential Property Index increased from 16 points to +34 - its highest level in nearly 6 years. Just like ANZ, NAB recorded better results in housing prices compared to initial predictions. The survey report also points out that all states showed stronger housing market sentiment - the first time since early-2018. NAB expects dwelling prices to rise by 4 per cent in 2020 and around 2 1/2 per cent in 2021.There will be a lot of first home buyer activity due to the Governments First Home Loan Deposit Scheme. First home buyers are also expected to increase their market share and will beat out overseas clients.
Strong employment and healthy population growth will also support property markets, especially Brisbane and thus; South East Queensland. SEQ continues to welcome more first home buyers and overseas clients. Most investors are expecting Brisbane’s market to surge, which mirrors ANZ’s findings derived in their housing report. As a result of new infrastructure projects being proposed and approved, SEQ will produce records numbers of new employment. The majority of projects will improve the livability in many suburbs across the region – further encouraging stability in housing demand. Brisbane’s population is one of the fastest-growing in Australia and the focal reasoning why smart investors are eyeing Brisbane as the better choice for property growth instead of other major cities.
The demand for residential property is growing with more investors coming in. Experienced and new investors alike are entering the SEQ market. They will take advantage of record low interest rates and loosened restrictions. The percentage of Australians planning to buy a property in the next 12 months jumped to 51 per cent from 38 per cent according to the latest property sentiment report of ME Bank. This created a sense of FOMO (Fear of missing out) among first home buyers. Gallery Group has a team of specialists to help you make informed decisions in purchasing a property in the SEQ either for investment or residence. Contact us today.