Strong price growth has returned to Sydney and Melbourne and is expected to spread to more affordable Brisbane, according to CBRE research. While the devastating COVID-19 outbreak has cast a shadow over the economy in the opening months of this year, CBRE's 2020 market outlook report says Australia’s development cycle is returning to undersupply. “Apartment supply cycles in the major capitals are past their peak and vacancy levels are well controlled,” CBRE's head of residential research Craig Godber said. The report notes that approvals in Sydney, Melbourne and Brisbane are “particularly evident” for large developments in the three capital cities. “With cost of debt low and lending volumes starting to turn, investors should gradually return,” Godber said. Property advisory group Charter Keck Cramer last week forecast an apartment undersupply by 2022 due to slumping numbers of new apartments under construction. The property advisory group said the demand-supply imbalance was largely...

Australia’s housing market faces a new balancing act, with a looming interest rate cut expected to offset threats that the coronavirus could derail reinvigorated buyer sentiment. Property prices across the country are recovering much faster than expected, with Sydney and Melbourne now growing annually at double-digit rates and values across five capital cities reaching a record high in February. [caption id="" align="alignnone" width="620"] The housing markets are recovering much faster than expected. Five capital cities have now reached record high values.[/caption] Darwin was the only capital city where home values fell, by 1.4 per cent, while Sydney recorded the strongest growth of 1.7 per cent over the month, followed by 1.2 per cent in Melbourne and 0.8 per cent in both Canberra and Hobart, according to CoreLogic's Home Value Index. For the first time since 2014, house values in Perth increased, albeit modestly, for four consecutive months, providing further evidence that...

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...