House prices made the biggest jump over 6% in Sydney and Melbourne
22 Jan 2020
House prices made the biggest jump in a decade, according to Corelogic’s results for the last quarter. The best performing capital city was Sydney with 6.2 per cent growth, followed closely by Melbourne at 6.1 per cent, Hobart had a 3.4 per cent jump, Brisbane 2.4 per cent, Canberra 2.3 per cent, while Adelaide experienced a 1.4 per cent uptick.
Corelogic head of research Tim Lawless said “The housing value rebound was spurred on by lower mortgage rates, a relaxation in borrower serviceability assessments, improved housing affordability and renewed certainty around property taxation policies post the federal election,” Lawless said.
Agreed by Capital Economics economist Marcel Thieliant and he said sales volumes were much stronger in recent months than the preliminary data suggested. The strong finish to 2019 is expected to be the start of larger gains in prices with anticipated listings, sales and RBA cuts to strengthen the market in coming months.
According to Sales Director of Raeon International, Australian real estate prices have actually fully recovered in 2019, and Hong Kong investors have also actively entered the market. In 2020, it is predicted that Sydney housing prices will continue to rise to 12-15%. HSBC Hong Kong reported that the sales transaction volume is already 50% of the number of properties sold throughout the year in 2019.