The property market over 2019 has seen some significant change, starting off weak before recovering strongly in the latter half of the year. In particular, as we looked over the first quarter of this financial year and we look at the reports produced by CoreLogic, we see that dwelling values in Sydney have risen by 6.4%. In Melbourne they’ve risen by 6.8%. In Brisbane they’ve risen by 1.8%. And, in most capital cities, there is positive growth occurring in those dwelling values.

As you may be aware from our previous videos, the CBA has also revised it’s projections for the market’s growth over 2020, anticipating that Sydney would see a 7% increase in dwelling values, that Melbourne would see an increase of 8% and Brisbane would see a 4% increase in dwelling values also.

There have been a variety of different factors that have contributed to this. One of which is the 75% basis point drop by the RBA. As well as easing tension in and around tax reforms, driven mainly by the stabilization that’s occurred after the election. There has also been the lowering of interest rates, and the easing of some of the lending criteria by APRA, which has definitely stimulated the appetite in the marketplace.

We’ve seen some improvements in the high-end marketplace, with low supply but plenty of demand coming into place. So, those postcodes are rebounding, and I believe that for many an individual, whether you’re a developer, a homeowner, an investor, for many of these individuals, real estate is one of the largest assets they currently hold on their balance sheet. So, seeing these positive upward marks towards the real estate market, certainly brings some relief. And, of course, it’s also a really strong indicator for where the market is going in 2020.