Monday, July 4, 2022

Sydney and Melbourne housing markets bounce back after two-year slump

Sydney and Melbourne housing markets are bouncing back after a major slump the previous two years, but another city is set to emerge as new property powerhouse

Sydney and Melbourne housing markets are bouncing back after a major slump the previous two years, however another capital city is set to be the new property powerhouse.

House prices in the state capitals are set to increase in 2020, according to property research firm BIS Oxford Economics in a report released Monday.

However the amount of new homes being built and added to the market would temper those price rises.

The Brisbane housing market is forecast to see a 20 per cent increase in house values – almost double the growth of the next biggest capital city.

In the next three years, the report predicts Brisbane house values to rise by 20 per cent, followed by Adelaide by 11 per cent, Canberra by 10 per cent, Perth at seven per cent, and Sydney and Melbourne trailing at six per cent.

While a growing population ensures ongoing demand for properties, price rises were being kept in check by construction of new dwellings.

Supply is at record levels, with new dwelling completions exceeding 200,000 in each of the past four years, BIS Oxford Economics associate director Angie Zigomanis said. This compares with underlying demand for new dwellings averaging around 195,000 per annum in the same period, which in itself is a record, he added.

Real estate agent Ted Hagemeijer of Place Graceville said there were some areas of Brisbane in particular where home buyers could snap up a bargain now ahead of the price surge. The best thing people can do is to buy a block that has plenty of potential and one can buy those in Oxley and Corinda for under $750,000, he told The Courier Mail.

He said, also over the last few years some towers were built along this corridor and the talk of oversupply a few years seems to have gone away. To be able to buy a two bed apartment eight train stops from the city for $419,000 makes sense.


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