As we blow off the holiday cobwebs and head into the new year, the property market is holding onto the healthy outlook that started late last year, more or less across the country. Most capital city markets look particularly strong as 2020 ramps up: house prices across all capital cities except Darwin and Adelaide grew throughout January.
Overall, Australia booked its best dwelling values increase in over a decade at the end of 2019. December quarter prices across the country rose by 4%, the best quartile performance since 2009. (I spoke about this in my last post, where I talked about recent regional market results.)
Looking ahead, one capital city is looking the most promising: Sydney.
The Harbour City saw house prices head upwards by 1.5% in January alone, contributing to an annualised growth of 27%, according to CoreLogic data. Median prices in Sydney are now only a whisker off the magical one-million-dollar mark, at just over $994,000.
Pundits are predicting some areas in Sydney will see sale prices grow by more than $100,000 in the coming year. With demand still outpacing supply and low interest rates, a Sydney market recovery is well underway. And summer of choking conditions due to raging bushfires does not appear to have daunted the buyers.
Select Residential Property Research (SRP) highlighted a number of growth areas that are spread across Australia’s biggest metropolis. Beachside locations and those close to the CBD feature prominently.
Bronte, on the eastern beach strip has the most growth potential, according to SRP’s figures. With a forecast rise in house prices of an average of $219,000 in the coming 12 months, this well-established beachside neighbourhood is well ahead of other Sydney hotspots.
Inner-city Paddington, once a lower-end neighbourhood full of run-down terrace houses, is in second spot with an average growth of $145,000 per house sale predicted over the coming year.
And suburbs nearby or fronting the northern beaches – like Brookvale, Allambie Heights, Collaroy or Narraween – also have strong growth potential in 2020.
Areas in the Sydney commuter radius, such as Davidson, Green Square, Badgery’s Creek, Auburn and (more or less inner city) Eveleigh are also looking to be solid contenders.
While Sydney is streets ahead in 2020 growth forecasts, other Aussie cities are also looking positive.
Other cities performing well
According to SRP, Tasmania’s Launceston represents the best bang for your property buck nationwide, with a forecast growth of 7.5% in the coming year, the highest of any location on percentages. Maitland in the Newcastle area also looks strong.
In the capital cities, the Queanbeyan-Canberra area and the Adelaide suburbs of Birkenhead and Hendon are trending upwards.
And while not reaching Sydney’s highs, Melbourne is not one to be caught napping in property market terms. House prices in Victoria’s capital rose 1.4% in January, contributing to an annualised growth of 22%; median prices for houses are trending upwards as well, reaching $798,671 in latest figures.
City-based unit prices are a little less remarkable, with Sydney recording a slight rise of 0.3% in January – a 4.9% annualised growth. Melbourne unit prices are more positive, with a 0.7% increase in prices in January and 8.7% in annualised growth.
Most other Australian capitals cities are trending positively as we move into 2020.
If you have property in any of these locations, these growth trends will be good news. And if you’re considering selling – in these areas, or elsewhere – the Resale Australia team have the knowledge and the expertise to help you make the most of the market trends, from location and timing, to finding the right buyer and the right price.
Property is our passion at Resale Australia. Whether you’re based interstate or overseas, we’re your team on the ground, watching out for your interests and giving you peace of mind.