Property market to continue growth in 2020

The rebound in the property market has been a welcome one and, according to the latest research from NAB, it’s set to sustain into the New Year.

The big four banks believe prices have already bottomed out, meaning now the only way is up. This price increase, which has been seen throughout the country, will continue for the remainder of 2019 and into 2020.

NAB’s survey of over 300 property professionals revealed improved housing market sentiment among these experts, with those from Victoria boasting the biggest turnaround.

The professionals expect to see positive gains in all states except Western Australia in the next year, with New South Wales, along with Victoria, leading the way.

“This marks a sharp reversal from the previous survey where Victoria and New South Wales were expected to be the weakest states for price growth and the only states where prices were tipped to fall,” says NAB Chief Economist Alan Oster.

Australia’s biggest cities, Sydney and Melbourne are expected to be the biggest movers in this recovery. By the end of 2019, NAB expects Sydney house prices to gain 1.8 per cent and 0.7 per cent for Melbourne.

“We expect moderate growth across the capital cities of 4.5 per cent in 2020,” added Mr. Oster. “The results suggest the Australian housing market is on the way to recovery.”

This bright outlook on the future of the property market has largely stemmed from the last few months.

Median house prices have risen by 2.7 per cent over the September 2019 quarter. Meanwhile, the median property price has risen to more than $770,000, and the median unit price increased by 1.8% to just under $540,000.

This is the first national quarterly growth seen since December 2017, and this, along with the cuts to mortgage serviceability rates, eased lending restrictions, and falling interest rates, have led to NAB’s improved outlook on 2020.

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