Housing Market Towards 2019
Your Loan Hub shows the possible status of the housing market in Australia in 2019. This year’s housing market was a rollercoaster ride, most major cities saw a decline in property value, whilst others experienced growth. Sydney house values continue to see a decline and so homebuyers are looking at regional areas. Regional markets wins this year as capital city values went down almost 1% compared to a 1.1% increase in regional areas.
Regional areas across Victoria and NSW are seeing strongest growth, with some regional centres rising over 9.3%. According to NAB’s Housing Update team, “it seems buyer demand has rippled away from the capitals… towards areas where housing is more affordable but also jobs, amenity and transport options are reasonably plentiful”.
Apartments gain attention
There is also a rising demand for units over houses. This trend is clearer in apartments among Sydney and Melbourne urban apartment dwellings, thanks to housing affordability pressures among homebuyers. Sydney’s unit values have grown by 1.9%, compared to house dwelling values falling by 3.8% in the last 12 months.
The Brisbane market appears to be bucking this trend. Early 2018 saw Brisbane house prices lying flat, though recent months have seen a rise of 1.8% in house prices, and a fall of 1.4% in units.
State by State: A Breakdown
Perth appears to be recovering from its 10.4% price fall since 2014. The median property value is lowest of all capital cities. This March 2018, Perth saw a 0.3% rise in dwelling value, however, units are continuing to fall.
Hobart and Tasmania are experiencing a property value boom this year. Houses are selling fast, and values have risen 13% in the past 12 months. Hobart is currently the seller’s market, with “low stock levels and high demand” according to property experts.
Down in South Australia, the property market is reflecting the jobs growth across Adelaide. Dwelling values are up 1.7% compared to late 2017.
The falling housing market trend does not appear to be stopping anytime soon in Sydney and Melbourne thanks to affordability pressures. However, the forecast is brighter for the remaining capital cities across Australia. Perth and Brisbane, in particular, appear to be hotspots for rising dwelling values.