Welcome to our first report of the new decade! What will the 20s be like for property markets in Australia?
Unfortunately, no one has a crystal ball to be able to accurately predict the future, but when it comes to property, it’s crucial to be aware of current trends to help you make the best possible buying or selling decisions.
There are clear signs that major Australian property markets like Sydney and Melbourne are recovering after a couple of tough years, while other markets like Perth and Darwin are still struggling. According to the latest CoreLogic figures, the average Australian homeowner currently keeps a house for 9.8 years before selling, and a unit for 8.4 years.
The start of 2020 sees the introduction of the federal government’s First Home Loan Deposit Scheme to help first home buyers to enter the property market sooner. The Scheme will enable up to 10,000 eligible first home buyers per year who have a deposit of as low as 5% to obtain additional government-guaranteed finance to avoid the cost of lenders’ mortgage insurance.
- The latest Domain figures reveal that
the volume of house sales in 2019 increased in 60% of Sydney suburbs compared
to 2018, while the number of unit sales
increased in 66% of Sydney suburbs over the same period.
- Domain data further reveals that since
mid-2018, Sydney house prices have regained two-thirds of the value that they
lost over the previous 18 months, while Sydney units have regained half the
value that they lost over the same period.
- According to CoreLogic, Mosman is
currently the most profitable Sydney suburb for home sellers. 98.6% of homes sold
in Mosman over the last quarter of 2019 were sold at a profit. The median
profit was a healthy $436,800.
- According to Domain, Melbourne unit price growth is
currently the strongest in Australia. Prices are 7.5% higher than their
previous peak in early 2018. Average unit prices in Melbourne are now higher
than median house prices in Adelaide, Perth, Darwin and Hobart.
- Over the last six months, the latest Domain data reveals
that Melbourne house prices have regained almost all of the value that they
lost during the eighteen-month downturn that occurred between January 2017 and
- Frankston is the
most affordable Melbourne suburb according to Domain, with a current median
house price of $570,000 that is well below the Melbourne median of $790,000.
- Only 63.5% of
Brisbane units are currently selling at a profit according to CoreLogic. A
number of new unit developments have flooded the Brisbane market in recent
years. Prices are currently 8.7% below their mid-2016 peak. It is a buyer’s
- Work on the
Queensland Government’s signature infrastructure project for Brisbane (the
Cross River Rail network) will increase in 2020, with 11 new work sites
becoming operational in addition to the 7 that are currently underway. The new
network will ease traffic congestion and the pressure on Brisbane’s heavily
utilised existing public transport system.
- Domain research
has revealed that four Brisbane suburbs achieved double digit house price
growth in 2019 in an otherwise flat market: Fig Tree pocket (30.2%), Windsor
(22.1%), Wilston (17.5%) and Newmarket (10.1%).
- According to the
latest CoreLogic figures, only 48% of listed Perth units have recently sold at
a profit, compared to 67% of Perth
houses. Both of these figures are well below the national average of 80% and
90% respectively for profitable unit and home sales.
- Homes in the Perth
suburb of Peppermint Grove are currently a notable exception, with the CoreLogic
data showing that no homes there sold at a loss in the December quarter and that
sellers made a median profit of $185,750.
- The latest Real
Estate Institute of Western Australia (REIWA) figures show that is currently
taking an average of 67 days to sell a Perth home, and that 8% fewer properties
were sold in the December quarter in 2019 than during the same period in 2018.
- Domain research
reveals that Canberra is the most expensive capital city in Australia to rent a
house, and the second most-expensive to rent a unit (behind Sydney).
- Rents in Canberra
have been rising by an average of 3% over the past five years according to
CoreLogic, which is well ahead of the national average of 1% over the same
period. Population growth in Canberra has been strong during that time.
- Recent changes to the Residential Tenancies Act that were introduced on
1 November 2019 make it easier for Canberra tenants to keep pets and make minor
modifications to properties without seeking landlord approval.
- The latest
CoreLogic data reveals that selling price records were set by homes in 61
Adelaide suburbs in 2019, despite a flat market.
- The latest Real
Estate Institute of South Australia (REISA) research reveals that Adelaide
suburbs with the highest capital growth for home prices over the past year were
Taperoo, Gulfview Heights and Greenwith.
- The REISA research
further reveals that the largest number of recent Adelaide home sales have occurred in Morphett Vale and
- According to Core
Logic, 48% of Darwin’s listed homes (61.8% of units and 39% of houses) are
currently selling at a loss, reflecting the overall depressed state of the
- Domain research
shows that over the last five years, Darwin has gone from being the second most
expensive city in Australia in terms of house prices, to the cheapest.
- SQM Research
predicts that Darwin will be the only capital city where property prices will
fall in 2020 on the back of excess stock, low demand and a struggling local
You can also view the 2-page report here: