5 MarSydney Property Forecast 2019: Top Suburbs and Market Outlook

 

The Sydney property market enjoyed ten years of steady and unobstructed growth; however, 2018 saw a slight softening of the market. The overall consensus is that 2019 will see much of the same. Therefore, what is the general forecast for the 2019 Sydney property market?

The period of steady decline in the Sydney property market saw:

  • Credit restrictions
  • Less foreign investment
  • Increasing bank funding costs
  • Expensive housing
  • Oversupply of apartment units in some places

2019 Forecast

The median house price in June 2018 was $1,103,50, a 7.6% decline since June 2017.

Outer and Western suburbs experienced a 2.8% drop, in addition to this, vacancy rates increased from 1.8% to 2.5 % in June 2018. There was a 7.4 % decline for Sydney dwellings by October 2018.

2019 Predictions

Property experts SQM Research have predicted an underwhelming softening of the Sydney property market in 2019 and beyond. An overall property pricing crash is not expected. They highlight a steady national economy, stable population growth and low unemployment to indicate that a significant property pricing crash is not on the cards for Sydney.

QBE’S Australian Housing Outlook has predicted a fall in prices between 2019 and 2020. Their predictions indicate that 2019 should see an 11 percent decline in prices with the median prices dropping -5.4 % between 2019 and 2020.

CoreLogic highlights various factors that could affect overall property prices in Sydney in 2019:

-9% decline if there is no cash rate change, Labor government May 2019 and a slow economy

-11% to -6% drop if 0.20% interest increase and Labor government

-6 % drop to -3 % drop if cash rate stays the same, slow economy and Liberals stay in power in the upcoming election

Property analysts have predicted that Labor’s planned repeal of negative gearing policy could harm property prices.

Best  Sydney Suburbs To Invest in 2019

Eveleigh

Dubbed the next Silicon Valley, Eveleigh is a trendy inner-city suburb with lots of investment potential. Up and coming tech innovation projects will lead to new job creation and startups setting up shop in the area. With brand new apartment projects, art center and hip cafes, Eveleigh is the perfect suburb for young families, professionals, and creative communities alike.

Waterloo

Waterloo is set to become a hot zone for property investors, with brand new apartment developments, local parks, art galleries, trendy shops, cafes and restaurants, a possible Metro line could be in the pipeline. Waterloo is certainly looking like  one of the suburbs to watch in 2019.

Brookvale

Brookvale offers relatively affordable housing, close to beaches. There are plans to transform Brookvale into a bustling place to be, with new bars, cafes and new residential developments on the cards. The transport system is efficient, and things are looking up for the Brookvale area.

Baulkham Hills

Baulkham Hills is a family-focused suburb with lots of investor potential. 20% of the suburb is rented, which is excellent news for potential property investors. The brand new Sydney Metro Northwest rail line which is due to open in 2020 will add value to the up and coming suburb, making it one to watch in 2019 and beyond.

The  general consensus for the 2019 Sydney property market is that property buyers will most likely have more buying power with softening of the market set to continue, there is no indication that there will be a total property price crash in Sydney. There is still lots of investment potential in the suburbs with continued infrastructure development, 2019 is set to experience a steady price decline overall, but nothing too significant.

5 MarBrisbane Property Forecast 2019: Top Suburbs and Market Outlook

The property market in Brisbane is set for a healthy start in 2019. With property values dropping in big cities like Melbourne and Sydney, Brisbane’s property values seem to be steadily rising as more young families are moving to South East Queensland. Steady economic growth, infrastructure improvement and falling unemployment makes Brisbane an attractive option for new and established property investors.

 

For future reference, Brisbane is forecast to see a 13 % property price growth by 2021. House prices are set to increase by a steady 4% in 2019. Although the overall forecast for the Brisbane property market is looking good, there are lots of things to consider here.

 

The property market in Brisbane has seen dwelling prices increase 0.3 % at the end of 2018, and with brand new apartment complexes like Queens Wharf and Howard Smith Wharves, Brisbane is looking like a desirable place to invest or set up home.

 

The value of apartment units is set to even out in the first quarter of 2019, and then increase by 3% by year-end. The forecast shows that by 2020, apartment units should benefit from another 3% increase.

 

Continuous population growth in the South East should contribute to housing demand and property value growth. Brisbane house prices are attractive and affordable in comparison to Sydney and Melbourne, with more and more families migrating to Brisbane to experience a more cost-effective way of life.

 

BIS Oxford’s three-year predictions imply that Brisbane will experience strong growth in the property market over the next three years. With a 13 % increase to a healthy median of $620,000.

 

Brisbane’s property market is expected to continue to see steady growth over the next year as other property markets in Australia experience a steady decline.

 

Brisbane median house price is significantly lower than that of Sydney or Melbourne making it far more affordable for young families, investors and those migrating from other parts of Australia. 12.7% of immigrants looking for property in Australia are settling in Brisbane.

 

Properties in Brisbane’s inner and middle ring suburbs give property buyers more bang for their buck, with healthier long term capital growth prospects.

 

Best suburbs in Brisbane for property investing:

Strapine

Strapine’s 12-month growth is currently sitting at 8%, with its median price at $421,500 with a 2.3 % annual growth. Majority of the properties are houses, and the average rental rate is $380 per week.

Ferny Hills

Ferny Hills’ 12-month growth is currently sitting at 1%, with its median price at $545,000 with a 2.8% annual growth. The properties in the Ferny Hills area are typically houses, and the typical rental rate is $460 per week. 

Kedron

Kedron’s 12-month growth is sitting at 8% currently, the median house price is now $735,000 with a 3.7% annual growth. The typical properties are houses, and the average weekly rental rate is $460. 

Oxley

Oxley’s 12-month growth is sitting at 9% currently, the median house price is currently $585,000, with a 3.5% annual growth. The average weekly rent is $410. Steady economic growth, improvements in infrastructure and a decline in unemployment makes Brisbane an attractive option for potential property owners and investors.

5 MarPerth Property Forecast 2019: Top Suburbs and Market Outlook

 

Perth is a picturesque city overlooking the Indian Ocean; it makes a beautiful place to live for young families, retirees and young professionals alike.

With the property market experiencing a downturn in Sydney, Melbourne, and other major cities, Perth has also undergone a slight decline; however, property pundits believe that the market will experience a steady upturn in 2019 and beyond.

Perth Property Forecast 2019

With reference to the QBE Australian Housing Outlook for 2019-2021, the overall prediction is that Perth’s property market should experience some notable growth halfway through 2019 and through to 2021. There are some crucial  things to consider here such as:

APRA credit restrictions

  • Reserve Bank could decide to raise interest rates if the markets are stable in 2020
  • Trade conflict between the USA and China over Iron ore could directly affect Perth’s housing market because Perth’s iron ore industry has recently seen an improvement.
  • If the Labour government passes a Negative Gearing Repeal, this might have an impact on rent prices.

Regardless of the issues mentioned, property experts predict that Perth’s property market will experience a positive upturn in the next two to three years.

Perth’s Property Prices in 2019

QBE’s predicts that Perth’s housing prices will drop -1.7% halfway through 2019, increasing +1.9% at the start of 2020, and 4.8 % in 2021. The median house price in Perth will level out at $550,000.

These figures indicate a 5% growth between 2019 and 2021. With the mining industry growing at a steady rate, more and more investors could be setting their sites on Perth in the next two years.

With a decline in the property markets in Sydney and Melbourne, property experts predict that the Perth property market could be one of the fastest growing markets in 2019 and 2020.

Unit Oversupply

When the mining industry saw an upturn in previous years, there was a significant demand for unit style housing. However, when the industry experienced a sharp decline, the need for units drastically declined. As a result, there has been a sharp unit price slump, with prices falling -5.4% in the past year. Prices are set to increase by approximately 2% by 2020.

The last year has seen a 1.0% population growth rate increase; also with an imminent mining industry revival, the oversupply problem could well be a thing of the past.

Best Suburbs To Invest in Perth 2019

House prices are relatively low in Perth at present; however, with forecast growth over the next two years, Perth could be a viable place to invest in property over the next two to three years.

Which suburbs should property investors be setting their sights on?

Stirling and East Fremantle

Stirling and East Fremantle experienced 1.9% growth whereas inner-city Perth experienced a -0.9 % decline. Outer Perth suburbs dropped -2.6%. Properties can be purchased for under $450,000.

Other suburbs to watch:

-Cottesloe

-City Beach

-Kardinya

-Coolbellup

-Bedford

-Kelmscott

-Harrisdale

With the impending mining industry upturn and steady population growth in Perth, it could experience some notable increase in the next two years. Property investors should keep an eye on the factors mentioned in this article that could have a direct impact on the property market such as interest rates, the trade conflict between the USA and China and possible policy changes. That being said, Perth is looking like a viable place for property investors to set their sites on.

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Once I help these business owners better understand how it works I can usually shift their mindset towards:

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Welcome to this month’s Property Market Update.

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Let’s take a closer look at some more property investment statistics to see just what the average Aussie landlord looks like… READ MORE