Sydney prices to tumble a further $60,000 by 2020: Finder's RBA Survey

Sydney prices to tumble a further $60,000 by 2020: Finder's RBA Survey
Sydney prices to tumble a further $60,000 by 2020: Finder's RBA Survey

Experts and economist in the Finder RBA Cash Rate Survey have predicted there are more price falls to come across the country over 2019.

Sydney and Melbourne units, which have gone on relatively unnoticed in comparison to the major capitals declining housing market, are set to fair the worst.

The experts believe Sydney units will decline 7.7% across 2019, with Melbourne just behind at 7.6%.

Declines of this magnitude will see Sydney units drop to around $54,000 to a new median of $650,000. Melbourne's new median would be $509,000 after a $42,000 drop.

There's no better news for the Sydney and Melbourne housing markets, which are predicted to continue to fall.

Sydney's houses are to see a further 6.2% decline, the equivalent to nearly $58,000, according to the Finder survey.

Melbourne will fare slightly worse, with 6.5% declines predicted, bringing their median down by $49,000.

The only capital city predicted to have property prices increase this year is Hobart, with houses set to rise in value by 1.4%, the equivalent of a $6,500 increase.

Click here to enlarge.

Sydney prices to tumble a further ,000 by 2020: Finder's RBA Survey 

Graham Cooke, insights manager at Finder, said the cooling market could be just what some first-time buyers need to get on the property ladder.

“With the highest median house and unit price in the country, it’s not surprising that Sydney is expected to be hit hardest by the property downturn.

“If the predictions hold true, Melbourne and Sydney property still have another 6 to 8 per cent to drop this year. This means $60,000 more knocked off the average property price in Sydney.   

“While this makes it harder for existing homeowners to build up equity, it could make Sydney an attractive market for first-time buyers with a deposit saved,” Cooke said.

Cooke said those thinking of getting into the property market over the next few years may be wise to hold out until prices have dropped further. 

“Right now, there’s no need to jump on the first property you like. Use this time to save for your upfront costs. 

“Look for value before you plunk down your deposit. Buying at the right time could potentially save you tens of thousands,” he said. 

 

 

 

 

 

 

 

 

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

Tags: 
Finder.com.au 2019 Property Price Forecast

Community Discussion

Be the first one to comment on this article
What would you like to say about this project?