Australia’s housing market is expected to remain red-hot through to the next year, according to a recent poll of property analysts.
In a recent poll conducted by Reuters, 13 property analysts believe that, thanks to interest rate cuts from the Reserve Bank of Australia (RBA) earlier this year and expectations of further cuts in 2020, average home prices across the country would rise by 5.0% next year before slowing to 4.5% in 2021.
Meanwhile, a regional breakdown of the poll data showed the cities of Sydney and Melbourne would lead property price growth in 2020, with house prices expected to rise 7.7% in Sydney and 7.4% in Melbourne next year.
“Oh, how the story has changed,” Paul Bloxham, chief economist at HSBC, told Reuters. “Six months ago, the key debate among many Australian housing market observers was how much further prices could fall. [Now] we expect housing prices to continue to rise in 2020, underpinned by mortgage rates, which are likely to stay low for a considerable period of time.”
“Households have responded strongly to regulatory easing and rate cuts,” Adelaide Timbrell, economist at ANZ, told Reuters. “Strong pricing growth particularly in Sydney and Melbourne is likely over the next year.”
