Is A Boom Looming?
The Australian property market could be on the cusp of another boom, according to analysis by Domain.
It says a rate cut, which many expect early next year, will give potential buyers more borrowing capacity and deliver them more money to compete for properties.
Domain chief economist Nicola Powell says house and unit prices in Sydney, Brisbane, Adelaide, and Perth hit new records in the September quarter and she believes once rates start to go down, buying activity and prices will go up.
Even in a higher interest rate environment, Sydney’s median house value increased by 0.6% to $1.65 million, and the unit value rose 0.9% in the June quarter.
Brisbane’s house value rose 1.5%, and units 3.3%, while Adelaide’s house value is up 4.2% and units 3% and Perth is up 3.1% and 0.9%.
Just two weeks ago the total value of the Australian property market reached $11 trillion for the first time.
CoreLogic executive research director, Tim Lawless says the immediate outlook for the housing market is for further growth but a continuation of a gradual loss of momentum and increasing diversity across cities and regions.
He says the upside of the housing market is improving sentiment amid a slowdown in inflation, tight labour markets and a consensus that the next move in interest rates will be a cut.
