After sustaining a decline of around 15% since the peak in mid 2017 ,the Sydney property market is now holding. With forecasters such as the NAB and ANZ advising of a flat or slowly rising market towards the end of 2019 and a small rise in property prices of 3% in 2020.
ANZ’s Senior Economists; Adelaide Timbrell & Felicity Emmett*, advised this change in sentiment has been driven by a combination of factors. The Reserve Bank of Australia (RBA) cut interest rates twice, the prudential regulator eased loan assessment requirements, and the election result delivered increased certainty around taxation arrangements for housing. All of these factors have helped shift sentiment from one of pervasive negativity to cautious optimism.
However the recovery in prices is still expected to be modest. Due to an increasing supply of property coming onto the market in the coming year in Sydney.
Newcastle’s property prices generally take their lead from Sydney with a 3-6 month lag. So improving conditions in Newcastle are anticipated by the end of 2019.
Scott Walkom, Director scott.walkom@walkom.com.au
Sources:
NAB : https://business.nab.com.au/nab-quarterly-australian-residential-property-survey-q2-2019-35772/
*ANZ : https://bluenotes.anz.com/posts/2019/07/australian-housing-update-anz-research