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The recent country-wide property downturn combined with shrinking interest rates has buoyed the confidence of next home buyers and property investors.

By: Victoria O’Neill, Nov 2019

Driven by incentives, discounts and grants, even first-time buyers across the country have been eyeing the property market. The monthly number of new loans to first home buyers in September was 6.8 per cent higher than the same time last year.

So, is it time for you to put property on your 2020 ‘must do’ list?

The Investor

  • As property prices cooled in recent times, so too did the confidence of investors. In 2020, property experts anticipate better times for those looking to build their wealth through bricks and mortar.

    CoreLogic and Moody’s Analytics’ 2020 forecast data suggests most markets will see property prices steadily increase in value, with the exception of Perth, Darwin and Tasmania, where further decline is expected.

    Hot tip:

    • Be on the look out for upcoming suburbs and growth areas that are attracting a new generation of telecommuters. Home prices in these in-demand locations are seeing considerable year-on-year growth, such as the 6.6 per cent increase seen in the Hunter Valley (New South Wales) or 12.3 per cent spike in Geelong (Victoria).

    In areas where property values remain weak, investors can capitalise on lower sale prices and historically low interest rates – but must seek out opportunities where rental demand is growing.

    Real Estate Industry of WA data noted a 16 per cent increase in leasing transactions in October, with 4,678 rental agreements signed. In-demand rental locations in Perth include Baldivis, Morley and Canning Vale.

couple-buy-rent-apartment-together-realtor-bright-window-sunlight  Each state and territory has its own First Home Owners Grant Scheme to help first home buyers.

The First Home Buyer

  • Despite recent gains made to property prices in October, home values are still 5.7 per cent below their 2017 peak, so there are still good buys to be had… for now.

    CoreLogic anticipates house values nationally will rise by 7.7 per cent in 2020 and 7.6 per cent in 2021. Apartment prices are expected to rise even more with a 7.9 per cent increase expected in 2020 and an 8.4 per cent rise predicted for 2021.

    Hot tip:

    • Each state and territory has its own First Home Owners Grant Scheme to help buyers get their foot on the property ladder. The rules in each state are different so be sure to do your homework to know what you may be eligible for.

The opinions expressed in this article are the opinions of the author(s) and not necessarily those of State Custodians. The above is general commentary only and is not advice tailored to any individual’s financial situation. We recommend seeking advice from a finance professional before implementing changes relating to your finances.

  • Use a calculator to get an estimate of how much you can borrow. Try one here.

  • See if you qualify. To get a more accurate idea of how much you can borrow with State Custodians, click here.

  • Call our Lending Specialists and they can do the calculation for you over the phone plus answer any questions you have at the time. Talk to us on 13 72 62.