What's in store for property markets in 2020?
Most cities to record dwelling price rises in 2020
It appears as though the property price dip we’ve seen over the past 12-18 months will soon be a distant memory.
Home prices across capital cities are forecast to surge by up to 11% over the next 12 months, even without further rate cuts, driven by strong demand from buyers in the Sydney and Melbourne markets, according to SQM Research’s Housing Boom and Bust Report for 2020. This surge is a culmination of interest rate cuts and loosening of credit restrictions by lenders.
Sydney and Melbourne will drive this price growth. The forecast is for Sydney to rise between 10% and 14% and Melbourne to rise between 11% and 15%. Hobart’s strong run of growth is set to continue alongside all other cities (except Darwin).
So, the property growth train is set to continue. Investors should be looking to take advantage of these historically low interest rates to either kick start their portfolio or continue building upon it. It is crucial to ensure we don’t over leverage ourselves and keep adequate cash buffers to ensure we can hold onto our properties once mortgage rates normalise and trend back to their long term average of circa 6%. Risk mitigation strategies should be a priority for all investors.
Needless to say we are on track for a solid performing 2020. Make 2020 the year you took control and ownership of your financial future. Book in a free call where I can help put you on the right path.
Ben Plohl – Founder & Director
BFP Property
ben@bfpproperty.com | +61 434 561 378
**All information published has been collated and prepared in good faith. No representation is given or implied as to its accuracy or interpretation. Please ensure you rely on your own research before making any investment decisions**
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