According to a Reuters poll of property market analysts, the recent interest rate cuts by the Reserve Bank of Australia (RBA) and another rate cut expected are likely to drive the Australian housing market upturn well into 2020.
Key Findings:
“The latest Reuters poll of 13 property analysts taken Nov. 6-20 showed average home prices would rise 5.0% nationally next year, nearly double the rate predicted just three months ago, and then slowing to 4.5% in 2021.
Six of 10 analysts who answered an additional question said further interest rate cuts to the record-low 0.75% benchmark cash rate after three RBA cuts already this year would stimulate Australia’s housing market activity and prices significantly.
All but one respondent in the latest Reuters poll said that Australia’s housing market activity is more likely to rebound over the coming 12 months than decline again.
A regional breakdown of the poll data showed Sydney and Melbourne, Australia’s two most populous cities which contribute about 43% to the country’s gross domestic product, would lead property price growth in 2020.”
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