Australia’s property market is in the middle or a remarkable recovery. Recent statistics from Metropole and Myhousingmarket suggest that the trend is continuing and that capital city markets will soon achieve new record high prices led by Sydney and Melbourne.
In the meantime, Brisbane is emerging as a market to watch, with an impressive increase in average asking price.
Onward and Upward for Sydney and Melbourne
Our two biggest capital cities are looking much better coming to year end for 2019 when compared to 2018. Melbourne’s average asking price increased by 1.6% during November to reach $821,374. The city’s average price is now just 3.7% below its all-time high – and that record could be broken as soon as January or February.
Sydney is also on track to reach a new record-high asking price as early as March 2020. These price increases have been consistent for more than three months now and are likely to continue well into the New Year.
In late 2019, Brisbane’s property market kicked into high gear. In fact, the average asking price for properties in the city increased by 4.4% during November. This growth may have started as a result of increased investor activity in the city, which came after Sydney and Melbourne’s recent downturn.
Brisbane’s growth is expected to continue, with BIS Oxford Economics forecasting 20% in price increases between 2019 and 2023. If this comes to fruition, it will make Brisbane Australia’s best performing capital city.
Michael Yardley at Property Update cautions against investors rushing into the Brisbane market, however. According to data from CoreLogic, freestanding houses within 5-7km of the city centre are the strongest performers, while most apartments are losing value or standing still.
Auction Clearance Rates Foreshadow Further Growth
Towards the end of 2018, auction clearance rates were in the mid 40 percentages in Sydney. They’ve improved steadily ever since, and as of November 30th, 80% of Sydney home auctions ended in a successful sale. Melbourne is also performing strongly, with clearance rates increasing from just 44% to 75.8% as of November 16th.
While nothing is certain, these high auction clearance rates show us that demand is strong and that prices should continue to increase through 2020. All the signs suggest that now is a great time to buy property in Sydney, Melbourne and Brisbane, whether you’re an investor or an owner occupier.
No matter where in Australia you’re buying, your best bet is to start your search the right way on Homes.com.au.