As an eventful 2019 wraps up, Australian interest rates are at a record low, credit standards have been loosened, and the property markets in Sydney, Melbourne and other cities are starting to flourish once again. So what can we expect for luxury real estate in 2020?
Healthy growth expected for Sydney and Melbourne property prices
The 2019 August CoreLogic Hedonic Home Value Index is expecting general growth of 7% or more in Sydney and Melbourne in the next year and the year after, with positive growth also expected for Brisbane, Adelaide and the ACT. In particular, Sydney apartment values could grow by an expected 7.9% in 2020 and 8.4% in 2021. This is certainly good news for those seeking apartments for sale in Melbourne and Sydney.
Smaller, more sophisticated homes on trend for 2020 and beyond
The McGrath Report 2020 identifies a number of burgeoning property trends, including smaller households and a desire for more minimalist homes. This change is attributed to both the minimalist ‘Kondo effect’ as well as environmental concerns. The report also delves into the market effects of the recent Opal Tower defect scare, and predicts that buyers will be far more discerning in choosing reputable developers with established track records. These trends indeed point to the fact that buyers will be seeking out apartments that offer sleek design and environmentally aware principles, and crucially those that are crafted with quality.
Healthy prime property markets in Brisbane, Sydney and Melbourne
Brisbane, Sydney and Melbourne all ranked amongst the top 21 cities in the world for luxury property market growth in Knight Frank’s quarterly Prime Global Cities Index for Q2 2019. Of course, there’s no forgetting the desirable hotspot of Brisbane, which earned Australia’s top price growth in the luxury residential market for the first time in March this year. The market for prestige property grew in this sunny city by 3.2% in the 12 months to March.
Meanwhile, Sydney had the strongest prime property performance (prime property representing the top 5% of each market by value) amongst the top eight global cities ranked on Knight Frank’s City Wealth Index 2019. The report predicts that prices in Sydney’s prime property market will grow 3% in value throughout 2020, while Melbourne’s has an expected growth rate of 1%.
Crown Group has been at work developing stunning new luxury apartments in Sydney, Melbourne and Brisbane in 2019 and 2020. Look out for these promising growth areas in the next 12 months and beyond, and be sure to choose a respected developer as the research suggests to maximise the value of your property investment.