Property Market Outlook Australia


Home buyers, sellers and property investors need to keep up with the latest developments in property and real estate markets.

If prices are headed up and rates are at reasonable levels, it may be a good time to buy. If prices are heading down, bargain hunters can grab opportunities, but some investors may be wary.

This property and real estate market update page has the latest news and important data to help you compare loans, markets, investments and deals.

You can keep up to date with capital city and regional property markets in Australia here and for more detailed news and information on individual markets, follow these links:

Sydney Property Market Outlook

Melbourne Property Market Outlook

Brisbane Property Market Outlook

Adelaide Property Market Outlook

Perth Property Market Outlook

Hobart Property Market Outlook

Canberra Property Market Outlook

Darwin Property Market Outlook

Keep up to date with the latest top low-rate home loan deals at InfoChoice.

Keep up to date with the latest RBA interest rates outlook at InfoChoice.

WARNING: Housing bubble forecast caused by rate cuts, 18 March 2020.

A new Australian property market price surge and eventual “housing bubble” is being predicted by a leading market and industry research firm.

A new report from Ibis World warns any easing of monetary policy (more rate cuts) could make home loans more affordable, leading to a housing price hike and a following bubble.

“Borrowers would be able to service interest on larger loans, and this would likely mean that banks will allow customers to borrow more money,” said Ibis World senior industry analyst Michael Youren.

“Greater borrowing capacity would continue to inflate property values.”

CoreLogic already believes Melbourne and Sydney are experiencing a bubble, recording month-on-month growth of more than 1 per cent.

Property prices are yet to be hit by coronavirus fears but auction clearance rates are diminishing, with less people willing to turn up.

With strict “social distancing” guidelines now in place, this could have a further impact on auction turn out.

“The impact so far has been pretty muted,” Domain economist Trent Wiltshire told Business Insider Australia.

“Clearance rates have been down a touch but they’ll still be pretty solid numbers when they’re finalised later this week, probably ending up around 70% in Sydney and 65% in Melbourne.”

“There are fewer people at inspections but it doesn’t seem like the news has flowed through to the property market although there is some risk to the short-term outlook.”

Only time will tell what the full impact of the virus will be. Like anything, we will just have to wait and see what governments do to help the economy, while importantly keeping health front of mind.

Check out the lowest home loan rate on InfoChoice right now – 2.47% pa comparison rate (variable, OO, P&I) from Reduce Home Loans.

Compare home loans from Australia’s banks, credit unions, neobanks and other lenders at infoChoice.


Capital City Auction Results for 14 March 2020

Auctions around Australia have been gripped by Coronavirus fears. Real Estate organisations and health authorities have issued strict guidelines on real estate gatherings.

Sydney Auction Results for Saturday 14 March 2020

There were 644 residential property auctions held in Sydney on Saturday 14 March 2020. 70 per cent produced a sale, up from 49% on the same weekend last year, for a median sale price of $1,110,000 in preliminary results reported by Domain.

Keep up to date with the latest outlook and forecasts for the Sydney property market at InfoChoice.

Melbourne Auction Results for Saturday 14 March 2020

There were 1091 residential property auctions held in Melbourne on Saturday 14 March 2020. 68 per cent produced a sale, up from 48% last year, for a median sale price of $900,000 in preliminary results reported by Domain.

Keep up to date with the latest outlook and forecasts for the Melbourne property market at InfoChoice.

Adelaide Auction Results for Saturday 14 March 2020

There were 62 residential property auctions held in Adelaide on Saturday 14 March 2020. 63 per cent produced a sale, up from 50% last year, for a median sale price of $772,500 in preliminary results reported by Domain.

Keep up to date with the latest outlook and forecasts for the Adelaide property market at InfoChoice.

Brisbane Auction Results for Saturday 14 March 2020

There were 75 residential property auctions held in Brisbane on Saturday 14 March 2020. 59 per cent produced a sale, up from 36% on the same weekend last year, for a median sale price of $825,000 in preliminary results reported by Domain.

Keep up to date with the latest outlook and forecasts for the Brisbane property market at InfoChoice.

Canberra Auction Results for Saturday 14 March 2020

There were 52 residential property auctions held in Canberra on Saturday 14 March 2020. 71 per cent produced a sale, up from 47% last year, for a median sale price of $837,500 in preliminary results reported by Domain.

Keep up to date with the latest outlook and forecasts for the Sydney property market at InfoChoice.

Keep up to date with the latest property market outlook at InfoChoice.

Keep up to date with the latest Australian interest rates outlook at InfoChoice.

Compare home loans from Australia’s major banks and other lenders at InfoChoice.


13 March 2020: Auctions could be hit by Coronavirus fears

More than 1,000 vendors have scheduled property auctions for this weekend in Melbourne but crowds could shrink as people shy away from large gatherings.

Other capital cities face similar issues for sellers. Real estate groups have now issued Coronavirus prevention guidelines for vendors and agents who are holding open houses, property inspections and auctions.

The Real Estate institute of Victoria, like other real estate organisations are issuing the following advice (edited):

For owners and principals (holding open houses, inspections and auctions):

Provide hand-washing facilities

Provide alcohol-based hand sanitiser

Promote good hygiene practices such as displaying posters on handwashing and respiratory hygiene;

Keep the workplace clean and hygienic by regularly cleaning high-touch surfaces such as door handles, counter tops and workstations;

Supply staff working off-site at open homes with travel-sized bottles of hand sanitiser and gloves;

Discourage any (agency) staff member who may be considered vulnerable and/or is suffering from illness attending open-homes, inspections, client meetings and other activities that involve client interaction including:

Pregnant women;

Elderly people with underlying health conditions;

People with compromised immune systems;

People with serious health conditions such as cardiovascular disease, diabetes, high blood pressure or cancer.

Learn more about the federal government’s Coronavirus economic stimulus package and keep up to date with the latest trending financial news at InfoChoice.

13 March: Another RBA Rate cut is coming in April

Futures markets have priced in a 100% expectation of another RBA rate cut in April to follow the RBA’s 0.25% rate cut in March. The assistant governor of the RBA signalled more rate cuts are coming due to the Coronavirus.

“Policy interest rates have been reduced in some countries, including Australia, and further reductions are expected where that is possible,” said Guy Debelle.

Last week the International Monetary Fund noted “the recovery of housing markets” in Australia.

The IMF said the Australian economy faces challenges including travel disruptions caused by the Coronavirus outbreak but pointed out that the Australian property market outlook has finished ‘cooling’ and “a rapid recovery in the housing market could boost private consumption and residential investment.”

Compare home loan rates at InfoChoice and keep up date with the latest RBA rates outlook.


12 March 2020: Aussie property has ‘finished cooling’ ready for ‘rapid recovery’ says IMF

Housing is supporting the Australian economy and housing is being supported by population growth.

Last week the International Monetary Fund reported that Australia is being supported by “monetary policy easing [low RBA rates], tax cuts, and the recovery of housing markets”.

The IMF also pointed out that the Australian economy faces challenges including travel disruptions caused by Coronavirus COVID-19.

The IMF noted that Australian property markets have finished ‘cooling’ and “a rapid recovery in the housing market could boost private consumption and residential investment.”

Keep up to date with the latest interest rates outlook at InfoChoice.

Housing construction gets a ScoMo boost

The residential building industry has contracted by around 20 per cent from its peak during the May 2018 quarter reported the Housing Industry Association. Most indicators showed an improvement in conditions for home construction in the second half of 2019.

Now the housing industry is getting a boost from the government’s coronavirus stimulus package.

“HIA welcomes the Australian Government stimulus package, particularly the support provided for apprentices,” said HIA Chief Economist, Tim Reardon.

“Australia is emerging from a residential building downturn and in the face of constraints on trade and tourism.

“Stability and clear direction to ensure the housing market does not take a backwards step is essential,” said Tim Reardon.

“The Australian Government pledged $1.3 billion to support keeping apprentices employed by providing small businesses up to $21,000 per apprentice.

“The extension of the instant asset write-off scheme to businesses with a turnover of up to $500 million, and to an asset value of up to $150,000, will also assist small businesses in the construction industry.

“Similar measures enabling accelerated depreciation have been effective in increasing capital investment in the past,” said Mr Reardon.

Compare home loans at InfoChoice.

Read more about the prime minister’s Coronavirus economic stimulus package at InfoChoice.



11 March 2020:

Population drives home prices up, coronavirus pushes rates down

Last week, the Reserve Bank of Australia lowered interest rates to a new record low setting of 0.50%.

Consumer economics have been further improved by oil prices plummeting: petrol prices are falling and heating bills could be next as we head into colder months. That means more money in your pocket.

The property market is similar to the stock market in a way, in that the most successful investors take a long term approach.

However while there is panic buying in the stock market due to the coronavirus, there is certainly no need for it in the property market as it takes a lot longer for home prices to feel the impact, if they feel the impact at all.

The Australian property market is hot.

Bidding wars are back and it is once again becoming difficult to find homes selling for less than the list price.

Demand is outstripping supply. More demand equals higher prices. However demand could fall if the coronavirus causes a recession leading to mass job losses and economic uncertainty.

What we have seen thus far though is central banks lowering interest rates to keep demand ticking over.

Australia’s property market is also well placed due to population growth.

The following table illustrates consistent growth over the last 30 years:

Coronavirus is helping to push interest rates down, while demand continues to increase. It’s a perfect storm for property buyers and home owners.

In essence, Australia continues to have one of the fastest-growing populations in the developed world and it is having an impact on both housing stocks and prices.

Sydney is growing strongly, with an annual return of 10.9 per cent growth on median house prices.

In Canberra, CoreLogic shows migration has helped contribute to a 4.1 per cent increase in annual dwelling values in the ACT.

Darwin’s weak population growth has seen the Northern Territory’s capital falling by 7.8 per cent in dwelling values over the last 12 months.

Brisbane has seen steady growth of 1.9 per cent, reflecting steady migration numbers.

Strong population growth is driving the Hobart market, which has increased by 5 per cent for the year.

Population growth is helping Melbourne home prices grow by 10.7 per cent.

South Australia remains stable despite little migration.

Western Australia is yet to benefit from net migration, with house prices falling by 4 per cent for the year.

Doron Peleg of RiskWise says, “Sydney and Melbourne’s population growth, job creation, improving economy and infrastructure will draw even more people to these cities and further drive up property demand.”

In other words, the market has recovered and remains healthy. Buyers need to consider, in this climate,  is can they afford their loan repayments if a recession hits and they lose your job.

Compare home loan rates at InfoChoice.

The information contained on this web site is general in nature and does not take into account your personal situation. Do not interpret the listing order as an endorsement or recommendation from us.  You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. If you or someone you know is in financial stress, contact the National Debt Helpline on 1800 007 007.

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