Property prices in Australia are set to surpass peak levels over 2020 as the robust turnaround across the nation’s biggest markets continues to gather pace.
House prices across capital cities are forecast to surge by up to 8 per cent over the next 12 months, with Sydney and Brisbane leading the way, reveals new research from property platform Domain.
Domain's forecast, which has doubled figures released in June of last year, also expects price growth to remain moderate over 2021.
Brisbane house prices are forecast to see strong price growth in the next two years as buyers continue to look beyond Melbourne and Sydney to buy.
“We forecast the median house price to rise by 8 per cent in 2020 and in 2021,” Wiltshire said.
“This follows a period of soft price growth when Brisbane’s house prices rose only 5 per cent in the previous three years.”
Domain economist Trent Wiltshire said low-interest rates and the expectation that interest rates will remain low will be the key drivers of rising property prices in 2020.
“Strong population growth, a slowdown in new housing construction, low levels of listings and the First Home Loan Deposit Scheme will also contribute to higher prices.
“Rising market sentiment and a jump in buyer demand, shown by rapid growth in mortgage lending and also more people viewing property listings, will also push up prices.”
Domain is also predicting an end to Perth’s long-running downturn in 2020 and expects median house and unit prices to rise by 5 per cent by the end of the year.
“Perth is likely to see the fastest price growth since the mining boom ended in 2014, welcome news for those looking to sell.”
“Buyer interest has also risen, with 'views per listing' up 40 per cent over the year and home loan commitments increased 15 per cent between December and March 2019.”
Domain's forecast, reliant on interest rates remaining steady, the economy improving and non-intervention from bank regulator APRA applying potential lending restrictions in order to slow down a runaway housing market.