Property prices in Australia’s largest cities are forecast to increase by more than 10 per cent this year, due to record low interest rates in the country.
According to AMP Capital, property prices in both Sydney and Melbourne will increase double-digit growth this year, as interest rates are set to be cut once again in either March or April.
Real estate values in the two cities have been recovering since the middle of last year, following a severe but short-lived slump.
Sydney’s mid-point house price surged by an annual pace of 9.3 per cent in January to reach AUS$994,300 while Melbourne values climbed by 8 per cent to AUS$798,671, the latest CoreLogic data showed.
AMP Capital does, however, expect property prices in Sydney and Melbourne to increase at a more leisurely pace by the end of 2020, before slowing to a 6 per cent growth level in 2021.
Elsewhere, property prices are predicted to rise by a more moderate 5 per cent in Brisbane and Hobart, which until last year was Australia’s best performing real estate market.
Adelaide and Canberra are expected to see a lower increase of 3 per cent this year, as prices in Darwin fell by 2 per cent and Perth values stayed flat after several years of decline.
Article published 28th February 2020