Sydney vs Melbourne vs Brisbane vs Adelaide property markets This week, on the 3 March the Reserve Bank cut interest rates in Australia to provide further support for the economy as it faces the threat of coronavirus. Most banks rushed to pass on the rate cut. A full list of lenders that have cut their rates this week is at InfoChoice. In making the rate cut, the Reserve Bank governor Dr Philip Lowe noted “further signs of a pick-up in established housing markets” and said home prices in Australia are “rising in most markets, in some cases quite strongly.” “Mortgage loan commitments have also picked up, although demand for credit by investors remains subdued.” All four of the biggest Australian capital city property markets are showing rising prices. Sydney, Melbourne, Brisbane and Adelaide property markets are all recovering from falls in prices since 2017. Sydney Auction results booming There were 911 residential property auctions in Sydney on 29 February with 77% producing a sale, up from 66% last year. The median price for properties sold at auction in Sydney on 29 February was $1.285 million, reported Domain in preliminary results. Sydney is Australia’s leading and most expensive property market. Sydney prices are fuelled by ongoing demand caused by mass immigration and a concentration of services in the city. Stamp duty relief for bushfire victims The NSW Government announced that families and individuals whose properties have been destroyed or substantially damaged by bushfires will receive stamp duty relief if they buy a new home. No stamp duty is payable for bushfire victims under a $55,000 threshold, which translates to a home worth $1.25 million. Read more about the outlook for the Sydney property market in 2020 at InfoChoice. Bumper Melbourne Auction results continue There were 1380 residential property auctions held in Melbourne on Saturday 29 February 2020 with 73% producing a sale. The median price for properties sold was $876,000, reported Domain in preliminary results. Tenants get more rights in Victoria From 1 March 2020, tenants are allowed under Victorian law to keep a pet in their rental property, with written consent from their landlord or rental provider. The new rules around pets are part of a package of 130 new rental reforms that will be introduced by 1 July 2020. Read more about the outlook for the Melbourne property market in 2020 at InfoChoice. Brisbane Auction results improving There were 82 residential property auctions held in Brisbane on Saturday 29 February 2020 with 44% producing a sale. The median price for properties sold was $730,000, reported Domain in preliminary results. Experts tip a Queensland property boom Some property experts, including Domain and BIS Oxford Economics are tipping Brisbane and SE Queensland property markets to lead the nation’s property recovery in 2020 and 2021. Domain is predicting Brisbane house prices will rise by 8% in 12 months. BIS Oxford Economics are predicting Brisbane prices will jump up by up to 20 per cent in the next three years. Read more about the outlook for the Brisbane property market in 2020 at InfoChoice. Adelaide Auction sales going up There were 64 residential property auctions held in Adelaide on Saturday 29 February 2020 with 71% producing a sale. The median price for properties sold at auction in Adelaide on the weekend was $605,250, reported Domain in preliminary results. South Australia is a SLOW and STEADY property market The median metro Adelaide house price grew (over the past five years) by 16.1 per cent according to realestate.com.au. Real Estate Institute of South Australia president Brett Roenfeldt said Adelaide traditionally offered slow and steady house price growth. “Investors should be looking at the Adelaide market because of that consistency, as long as you’re prepared to hold it for five years or longer.” Read more about the outlook for the Adelaide property market in 2020 at InfoChoice. 6 March 2020: Capital city property markets compared Perth vs Hobart vs Canberra vs Darwin This week, on the 3 March the Reserve Bank cut interest rates in Australia to provide further support for the economy as it faces coronavirus. Most banks rushed to pass on the rate cut and a full list of lenders that have cut their rates this week is at InfoChoice. The Reserve Bank governor Dr Philip Lowe noted more “signs of a pick-up in established housing markets” and said home prices in Australia are “rising in most markets, in some cases quite strongly.” “Mortgage loan commitments have also picked up, although demand for credit by investors remains subdued.” Most Australian capital city property markets are showing rising prices, except Darwin. Perth, Canberra and Hobart property markets are all recovering from falls in prices since 2017. Darwin’s home prices are still in decline and have been falling slowly since 2014. Recovery takes shape in Perth The median house value in Perth is now $442,691, according to the latest data released from CoreLogic this week. House values in Perth are down 4% over 12 months but for the first time since 2014, house values in Perth have increased for four consecutive months. Perth home values increased 0.3% in January said CoreLogic. Perth may be the capital city with the strongest outlook for property prices and returns according to a survey of 401 property investors across Australia. 61 per cent of respondents ranked Perth as the market with the highest growth potential in the next three years. Read more about the Perth property market outlook for 2020 at InfoChoice. Canberra rents second only to Sydney Canberra may be an undervalued property investment market with reasonable values and high rents. Canberra’s median rent is now $556 per week according to CoreLogic. That is just $18 less than Sydney’s median rent of $574 in the latest data released this week. Melbourne’s median rent of $458 is now $98 lower than Canberra’s median rent. The national median rent is now $440 in Australia, $116 lower than Canberra’s median rent. Read more about Canberra’s property market outlook for 2020 at InfoChoice. Regional Tasmania working well for property investors The median house price in Hobart is now $520,201 (March 2020). For the rest of Tasmania, the median house price is now $315,338. While Hobart property investors enjoy the lowest vacancy rates in Australia and continued demand for homes, Tasmanian regions are outperforming their capital city. Gross yields for property investors in regional Tasmania are about 5.3% with total returns including price growth of 14.8% over the last 12 months. One town that is doing particularly well for some homebuyers is St Helens on Tasmania's east coast where house prices have risen 20 per cent from $267,500 in 2017 to $320,000 in 2019. Read more about Hobart’s property market outlook for 2020 at InfoChoice. Darwin is the cheapest capital city in Australia The median dwelling price in Darwin is now $386,345, down 1.8% over the last three months and 7.8% down over the last 12 months. Darwin is the weakest performing capital city property market, in terms of house price growth, over the 12 months to February 2020 according to CoreLogic. “When we look at typical purchase price across the Darwin dwelling market,” said Eliza Owen from CoreLogic, “we are looking at about $390,000 and that's the cheapest that you'll find across the capital city market.” Meanwhile Darwin produced the highest rental yields of any Australian capital city – 5.9% in the last 12 months. Read more about the Darwin property market outlook 2020 at InfoChoice. Compare home loan rates at InfoChoice. Keep up to date with the latest outlook on interest rates at InfoChoice. 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