Sydney to lead Asia-Pacific region with six per cent real estate value growth in 2020: Savills

Sydney to lead Asia-Pacific region with six per cent real estate value growth in 2020: Savills
Sydney to lead Asia-Pacific region with six per cent real estate value growth in 2020: Savills

Sydney is predicted to lead the Asia-Pacific region with more than six per cent capital value growth in 2020, according to Savills Global prime residential forecasts 2020.

Lisbon and Moscow are the only other capitals across the globe to be forecast to see over six per cent gains.

Sydney's growth predicted was attributed to lower interest rates, increasing immigration and continued increase in demand.

Savills did advise however the market remains sensitive to global uncertainty and price rises could be reactive to any fluctuations in the market.

They said the ongoing bush fires may be a near-term mitigating factor for the market as they start to impact on national GDP growth, however it isn't expected to weaken capital city price growth for middle- to upper-priced detached housing or market sentiment. They suggest it will continue to impede growth in rural areas

Paul Craig, chief executive of Savills Australia and New Zealand, said the Australian residential market is reverting upwards fuelled by lower mortgage rates and unfulfilled demand.

“At 31 Aug 2019 CoreLogic’s National price change was -5.2%yoy, at 30 Nov 2019 the National price change had improved to +0.1%yoy. Sydney (was -6.9%yoy) improved to +1.6% and Melbourne (was -6.2%yoy) improved to +2.2%yo", Craig said. 

Prime residential forecasts 2020 and prime capital value price growth 2019

City

2020 growth forecast

Capital value growth 2019 

£/psf

$/psf

€/psm 

Lisbon*

6% to 7.9%

-

£700

$920

€ 8,900

Sydney

6% to 7.9%

1.7%

£1,270

$1,670

€ 16,100

Moscow

6% to 7.9%

2.3%

£980

$1,280

€ 12,400

Paris

4% to 5.9%

6.4%

£1,210

$1,590

€ 15,400

Amsterdam*

4% to 5.9%

-

£710

$930

€ 8,900

Guangzhou

4% to 5.9%

0.5%

£890

$1,170

€ 11,300

Hangzhou

4% to 5.9%

4.8%

£750

$980

€ 9,500

Berlin

2% to 3.9%

8.8%

£760

$990

€ 9,600

Singapore

2% to 3.9%

-0.2%

£1,200

$1,580

€ 15,300

London

2% to 3.9%

-1.5%

£1,460

$1,920

€ 18,500

Cape Town

2% to 3.9%

-6.3%

£230

$310

€ 3,000

Shanghai

2% to 3.9%

3.3%

£1,340

$1,760

€ 17,000

Tokyo

0% to 1.9%

1.9%

£1,650

$2,160

€ 21,000

Los Angeles

0% to 1.9%

-2.8%

£1,050

$1,370

€ 13,200

Geneva*

0% to 1.9%

-

£1,470

$1,930

€ 18,700

Beijing

0% to 1.9%

0.9%

£1,090

$1,440

€ 13,900

Shenzhen

0% to 1.9%

1.9%

£1,130

$1,480

€ 14,300

San Francisco

0% to 1.9%

-3.2%

£1,180

$1,550

€ 15,100

Madrid

0%

0.6%

£550

$720

€ 7,000

Barcelona

0%

0.7%

£490

$650

€ 6,200

Bangkok

0%

-1.0%

£670

$880

€ 8,600

Miami

-1.9% to 0%

-5.4%

£730

$960

€ 9,300

Mumbai*

-1.9% to 0%

-

£980

$1,290

€ 12,500

Kuala Lumpur

-1.9% to 0%

-1.0%

£210

$280

€ 2,700

New York

-1.9% to 0%

-3.0%

£1,910

$2,510

€ 24,300

Dubai

-2% to -3.9%

-5.8%

£440

$580

€ 5,600

Hong Kong

-6% to -7.9%

-1.5%

£3,510

$4,610

€ 44,700

 

“The RBA and APRA will become concerned as house prices approach 2017 highs (expected in May 2020) and we could see the reapplication of macro-prudential measures to curb house prices and address affordability issues.”

 Savills Australia's director of residential Chris Orr said luxury property in Sydney’s key markets have definitely bounced back.

“Sydney overall has recovered anywhere from 5-7% in blue-chip areas however there are still some local markets where there is an oversupply of apartments which has negatively impacted prices", Orr said.

“Australia as a whole, is considered a growth market at the moment given our recent financial regulations having changed for the better and new re-elected Government which is focussed on maintaining a secure economy."

 


 

 

 

 

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: 
Sydney Price Growth

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