- November 26, 2019
- Posted by: Rogers Property Group
- Category: Australian Property Market, International Property Market, Latest News, Property Investment
As 2019 comes to a close, it is important to look back and review what has happened and changed within the property market as a whole, and reflect on how these changes are likely to impact the coming year.
The continued low interest rates have resulted in a change in renting/owing percentages. This year has shown an increase in affordability to own rather than rent, as discussed by Tim Lawless in the 7 November Property Observer.
There has been an increase in property investment recently, which is in correlation to the current low interest rates. In fact, it is expected that there may even be a further rate drop early next year. (This was originally forecast for November 2019) This is great news for both home owners and investors making it even easier to own property.
Following on from this, Joel Robinson in his October article “Borrowers taking advantage of falling interest rates” notes that these rates have also led to an increase in both the value and number of investment loans.
There is an expectation that there will be a significant increase in both property demand and prices in 2020.
It is estimated that the first few months of 2020 could bring about a dramatic jump in property prices if the current trend continues, as noted by Joel Robinson in his October article in the Property Observer. BIS Oxford is also predicting a very strong 2020 with their forecast for Brisbane to be around 20% in the next 2 years.
SQM’s Managing Director Louis Christopher is predicting up to a + 7% growth in Brisbane in 2020.
It appears that by early 2020 Brisbane’s housing market will continue to improve in terms of investment opportunities and affordability. The average value of a home in Brisbane has increased by over 1.5% per year. Statistics show that Brisbane is one of the strongest property markets in the country.
There has been a 6% growth to the median house price on the Gold Coast also making it Number One in Queensland, followed by Logan at 4%, Redland at 3.9%.
Given these trends, there is a possibility of buyers wanting to purchase yet to be listed properties.