Updated: Oct 29, 2019
Nasir Ghafoor has a look at property rebound.
Sydney and Melbourne house values will lead the national market to a 5.4 per cent rebound next year although prices are expected to fall further before the end of 2019, according to Moody's Analytics.
Analysts expect Sydney house prices to jump 7.7 per cent next year and a further 7.6 per cent by 2021. Values in Sydney's north-western region, which includes Baulkham Hills, Dural and Rouse Hill, are forecast to surge by 11.1 per cent in 2020 and another 11.9 per cent in 2021.
Melbourne is tipped to rack up 7 per cent growth next year and another 7.8 per cent in 2021.
However, despite national house values starting to rise around the September quarter after falling for almost two years, house prices are on track to end the year 7 per cent lower nationally as the market moves out of its correction, Moody's Analytics says.
Sydney house values are set to fall by 8.4 per cent in 2019 and Melbourne will see house prices drop by 9.2 per cent.
Katrina Ell, economist at Moody's Analytics.
“ We're seeing a sustained pick-up in the Sydney and Melbourne markets from the third quarter and we're expecting that to continue right through 2020,"
"We're seeing a sustained pick-up in the Sydney and Melbourne markets from the third quarter and we're expecting that to continue right through 2020," said Katrina Ell, economist at Moody's Analytics.
"The combined effect of the lower lending rates and some easing in credit conditions are all helping the recovery."
The outlook for Sydney apartments is also brighter with values predicted to jump by 7.9 per cent next year and another 8.4 per cent by 2021. A similar fast-paced recovery is expected for Melbourne's apartment sector with values forecast to increase by 4.8 per cent in 2020.
After a relatively healthy growth last year, Brisbane house values are expected to underperform the other major markets by growing just 2 per cent in 2020, dragged down by the weakness in South Brisbane housing values.
The outlook is more positive for Brisbane apartments with values predicted to grow by 5.4 per cent next year.
Perth house values are set to drop sharply this year, losing 7.8 per cent, but the rate of decline is forecast to slow dramatically by 2020.
Moody's expects house prices to fall by just 0.7 per cent before rising by 3.1 per cent in 2021.
"We're already seeing that the pace of decline in Greater Perth houses has slowed. By 2021, we will start to see a return to value growth in this market," Ms Ell said.