Canberra will have 2020's strongest house price growth: Domain
Domain’s Property Price Forecast report has predicted Canberra will be the strongest performing house sales market in 2020.
It has an expected growth in house prices of between 4 to 6 per cent.
Sydney and Brisbane are tipped to have a slightly lower of growth, at 3 to 5 per cent.
Sydney’s biggest correction in house prices since the 1980s should be over by year’s end, according to new forecasts which expects median house prices in Sydney to bottom out at about $1 million and median unit prices to dip just below $700,000 in spring.
Domain economist Trent Wiltshire said the trifecta of an interest rate cut, the Coalition’s election win and potential lending rule changes helped the market bottom out sooner than expected.
Wiltshire expects subdued growth with property prices unlikely to run away again, due to tight lending conditions and highest levels of household debt.
“Banks and borrowers are still pretty cautious,” Mr Wiltshire told Domain.
“The outlook for the economy is pretty weak so that’s another reason why I don’t think we’ll see a big boom.”
House price forecasts | ||
| 2019 (6 month change) | 2020 (annual change) | |
| Australia (combined-capital cities) | 1% | 2% – 4% |
| Sydney | 2% | 3% – 5% |
| Melbourne | 1% | 1% – 3% |
| Brisbane | 1% | 3% – 5% |
| Perth | 0% | 0% – 2% |
| Adelaide | 1% | 1% – 3% |
| Hobart | 0% | 2% – 4% |
| Canberra | 2% | 4% – 6% |
| Notes: Stratified median house price forecasts. 2019 forecast is 6 month per cent change from June quarter 2019 to the December quarter 2019. 2020 forecast is the annual per cent change from December quarter 2019 to December quarter 2020. Darwin excluded from forecasts due to small volumes and market volatility. | ||
Hobart will have the strongest unit growth in 2020.
Unit price forecasts | ||
| 2019 (6 month change) | 2020 (annual change) | |
| Australia (combined-capital cities) | 1% | 1% – 3% |
| Sydney | 2% | 2% – 4% |
| Melbourne | 1% | 0% – 2% |
| Brisbane | 0% | 0% – 2% |
| Perth | 0% | 0% – 2% |
| Adelaide | 2% | 1% – 3% |
| Hobart | 2% | 3% – 5% |
| Canberra | 1% | 1% – 3% |
| Notes: Stratified median house price forecasts. 2019 forecast is 6 month per cent change from June quarter 2019 to the December quarter 2019. 2020 forecast is the annual per cent change from December quarter 2019 to December quarter 2020. ‘Units’ includes units and apartments. Darwin excluded from forecasts due to small volumes and market volatility. | ||
Mr Wiltshire’s forecasts were made on expectation of two RBA rate cuts in July and November this year, national population growth of 1.75 per cent each year, a steady national unemployment rate of 5 per cent, and modest growth in home lending from late this year.