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  • Property market update December 2019

    Property market update December 2019

    An early Christmas gift from the RBA as low rates continue to boost prices.

    Another rate cut in October further lifted sentiment in a market already in recovery mode. So where to from here? 

    The last 12 months in the property market has been a classic ‘game of two halves’. In the first half of 2019, the market continued the downward trend that started in late 2017. But since June, national dwelling values have risen by 4.7% – largely thanks to RBA rate cuts in June, July and October.

    The recovery has been particularly strong in Sydney and Melbourne, where dwelling values were up 6.4% and 6.2% respectively in the last quarter alone. At the other end of the spectrum, only Perth (-0.9%) and Darwin (-1.1%) experienced negative growth over the quarter. 

    With the official cash rate now sitting at just 0.75%, it’s clear the RBA is running out of wriggle room. Which begs the question – what can we expect from interest rates and the housing market in 2020?

    According to RBA Governor Philip Lowe, “a gentle turning point appears to have been reached” for the Australian economy1. While that may signal an end to the rate cuts in the short term, Lowe also states that the RBA is prepared to cut rates further “if needed”. 

    Either way, it seems low interest rates are set to be with us for a while yet  – which may support property price growth in 2020. 

    With the end of the year approaching, it’s a good time to think about your property goals for next year. Is it time to renovate, upsize or downsize? Should you take advantage of low interest rates and buy an investment property, see our article on up-and-coming suburbs for some inspiration.

    Whatever you’re planning, we’ll keep you informed and up-to-date with RAMS Talk. I wish you all the best for a safe and enjoyable holiday season. 

    Median dwelling (house/unit) prices at 30 November 20192

    City Median dwelling price (house and units) Capital growth last 12 months
    Sydney $840,072 1.6%
    Melbourne  $666,883 2.2%
    Brisbane $497,491 -0.5%
    Adelaide $433,845 -0.5%
    Perth $437,080 -7.7%
    Darwin $388,018 -10.9%
    Hobart $474,186 4.2%
    Canberra $611,841 3.0%
    Combined capitals $622,436 0.4% 

    1Statement by Philip Lowe, Governor: Monetary Policy Decision, 5 November 2019

    2CoreLogic Home Value Index, 1 December 2019

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    The information here is of a general nature only and is not intended to constitute financial or tax advice. You should consult your professional adviser, accountant or taxation expert for advice specific to your personal circumstances.

    The views and opinions expressed in this article are those of the author alone and do not necessarily represent the views or opinions of RAMS Financial Group Pty Ltd ABN 30 105 207 538 (RAMS),  Westpac Banking Corporation ABN 33 007 457 141 (Westpac) or their related bodies corporate. This article is strictly for information purposes only and neither RAMS, Westpac nor any of their related bodies corporate make any representation as to the accuracy or completeness of the information in this article or endorse the views expressed in it.