Strong property price growth across Australia’s capital cities in the coming year looks set to continue into 2021, according to a new property forecast.
Domain’s Property Price Forecasts for February 2020 has indicated that the rapid price rises seen at the end of 2019 won’t be stalling any time soon.
Across a combined capital city calculation, Domain is expecting the median house price of $809,349 to improve by 8 per cent by the end of 2020.
It expects a further 5 to 7 per cent increase to occur in 2021.
When it comes to units, a combined capital city median price of $565,024 set in December 2019 should see growth, on average, 0f 6 per cent.
In 2021, Domain has forecast a further 3 to 5 per cent growth in values.
Breaking it down to the respective locations, what is the property group predicting price-wise for each capital city in 2020 and into 2021?
As of December 2019, Sydney’s median house price was $1,142,212.
Domain is forecasting a 10 per cent increase in value to occur this year alone. A further 6 to 8 per cent boost is predicted for 2021.
With unit prices in Sydney sitting at $735,387 at the end of last year, Domain is predicting a further 8 per cent increase on values to occur this year alone.
This will slow to growth of just 3 to 5 per cent for 2021.
The end of last year saw Melbourne house prices sitting at a median $901,951.
In 2020, prices are predicted to jump a further 8 per cent, followed by 2021 gains of around 3 to 5 per cent.
The unit price forecast is not quite so promising for potential investors, with a median unit price of $549,701 able to expect a 5 per cent boost in the coming year, before a 2 to 4 per cent value increase in 2021.
Queensland’s capital city market can expect to see some sustained house value gains over the next two years.
With a median house price of $577,664 reported in December 2019, investors can expect to see values jump by 8 per cent this year.
The forecast for 2021 is just as promising, with a further 7 to 9 per cent growth in values expected on 2020 figures.
For units, a base price from 2019 of $377,549 will see growth of around 6 per cent in 2020.
A further 4 to 6 per cent value increase has been forecast by Domain for 2021.
Recording the second lowest property value for December 2019 out of the listed cities, Perth’s median house price of $537,013 should be able to provide investors and owners with value gains of 5 per cent in 2020.
Growth is still on the horizon in 2021, with Domain forecasting a further 3 to 5 per cent improvement to prices.
It’s a similar story for apartments. With the average unit valued at $342,708 in December 2019, investors can expect values to improve by 5 per cent this year.
A further 3 to 5 per cent growth is expected for 2021.
Posting a December 2019 median house value just above Perth’s by the end of last year, Adelaide’s average value of $542,947 isn’t expected to see as much gain for investors in the coming years.
In 2020, Domain has forecast the South Australian capital to see values improve by just 3 per cent.
This is expected to be followed by further gains of 2 to 4 per cent in 2021.
For units, a median price point of $306,327 is predicted to see values improve by just 3 per cent in 2020, before values grow by a further 2 to 4 per cent in 2021.
Despite a strong recent run for Hobart’s housing market, value improvements will be slower across 2020 and 2021.
A median house price of $530,570 is only expected to increase by 3 per cent before 2020 ends.
A further 2 to 4 per cent increase in values is predicted for 2021.
When it comes to units, the outlook is for the lowest growth across all capital city markets.
In December 2019, unit prices in the Tasmanian capital were $441,104.
Domain has predicted 2 per cent growth in values across 2020, with a forecast of a further 1 to 3 per cent value increase by December 2021.
The Australian capital’s median house price of $788,621 from December 2019 puts it third value-wise heading into 2020.
This median price is expected to see growth for investors of 4 per cent by December 2020, with a further 3 to 5 per cent value improvement expected the following year.
The picture is not quite so rosy for units.
While apartments had a median price of $455,537 in December 2019 across the territory, their value is only expected to grow by 3 per cent by the end of 2020.
A further 1 to 3 per cent value improvement has been earmarked for 2021.