Property prices tipped to climb across all capital cities this year - so where should you get in quick?
- Domain Group expects city house prices to surge by 3-10 per cent in 2020
- Values in Sydney are forecast to rise 10 percent and surpass 2017 peak
- Melbourne and Brisbane prices both expected to climb 8 per cent by Christmas
House prices in Australia's biggest city are expected to surge by 10 per cent this year, making real estate even harder for the young to obtain.
The Domain Group, a leading real estate sales website, is forecasting median price rises in every capital city in 2020 and 2021.
It is particularly upbeat about Sydney, predicting a 10 per cent increase this year in the mid-point value for houses.
A home with a backyard in Sydney typically sold for $1.14million in December 2019 but should those predictions materialise, median prices would surge to $1.25million by year's end.
Domain is particularly upbeat about Sydney, predicting a 10 per cent increase this year in the mid-point value for houses. A home with a backyard in Sydney typically sold for $1.14million in December 2019 but should those predictions materialise, median prices would surge to $1.25million by year's end. Pictured is a house for auction in Carlingford with a reserve price of $1.43million
Share this article
Sydney house prices peaked in June 2017 before suffering a record plunge, but are now expected to hit new records, possibly in the first half of 2020.
Melbourne real estate values were expected to climb by 8 per cent this year, which would take the median from $901,951 to $970,000 come Christmas.
Brisbane was also seen as a good prospect, with house prices also tipped to rise by 8 per cent, which would see the median climb from $577,664 to $620,000.
Even Perth, a struggling market, was expected to recover in 2020 with detached home prices expected to increase by 5 per cent, from $537,013.
Melbourne real estate values were expected to climb by 8 per cent this year, which would take the median from $901,951 to $970,000 come Christmas. Pictured is a house at Moonee Ponds selling for $900,000
Adelaide prices were tipped to climb by a more modest 3 per cent, from $542,947.
Hobart, until recently Australia's best performing housing market, was forecast to enjoy a more subdued increase of 3 per cent in 2020, from $530,570.
Canberra prices were tipped to increase by 4 per cent from $788,621.
Domain economist Trent Wiltshire said record-low interest rates were likely to underpin house price increases in every capital city market in 2020 and 2021.
'It has really sunk in for borrowers that low rates are here to stay and this has given them confidence to borrow again,' he told The Australian Financial Review.
In January, the federal government's $500million First Home Loan Deposit Scheme debuted.
Property newcomers can take out a loan with a 5 per cent deposit, with taxpayers funding the balance of the 20 per cent deposit.
Brisbane was also seen as a good prospect, with house prices tipped to rise by 8 per cent, which would see the median climb from $577,664 to $620,000. Pictured is a house at Annerley being offered at auction
