The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
JUST 15 DAYS UNTIL OUR FLAGSHIP CONFERENCE JOIN MORE THAN 550 ALREADY ATTENDING
JUST 15 DAYS TO GO UNTIL URBANITY-25 550+ ALREADY ATTENDING
REGISTER NOWDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
42
print
Print
OtherDinah Lewis BoucherWed 05 Jun 19

Housing Market to Bottom Out Earlier than Expected

4afead46-2037-4425-8fd7-0341e5c2f4cd

Australia’s residential downturn is expected to reach bottom in most markets earlier than previously expected, with some economists and industry commentators forecasting as early as the end of this year or 2020.

Following the banking royal commission and federal election, CBRE’s recent Australian residential report highlights an increasing number of buyers looking to enter residential markets.

“Which would provide stronger support for prices and bringing forward the cyclical market bottom into 2019,” CBRE head of residential research Craig Godber said.

The Reserve Bank announced it would lower the cash rate from 1.5 per cent to 1.25 per cent on Tuesday, marking the first official rate move since late 2016.

While lower rates, in combination with other recent regulatory measures, will lend further support to Australia's slowing residential market, rising unemployment, high debt and tightening credit still dampens the property market outlook.

Research group Capital Economics has forecast a 3 per cent rise in the housing market next year.

While AMP Capital's chief economist Shane Oliver expects Australia’s housing market next year to be flat after revising peak-to-trough falls to 12 per cent from his earlier forecasts of 15 per cent.

“However, given still high house prices and poor affordability, still very high debt levels, tighter lending standards, and rising unemployment a quick return to boom-time conditions is most unlikely,” Oliver added.

Godber says signs were now emerging that a controlled relaxation of credit constraints could help stabilise property prices.

“The strong likelihood of further rate cuts by the RBA over the remainder of 2019 is expected to boost the prospects of an earlier than anticipated market recovery.”

In its June report, CBRE says it still expects median price peak to trough falls of up to 20 per cent in Sydney and Melbourne as prices bottom in 2019 through to 2020.

“A surprise to us has been the resilience of Melbourne unit prices, but we expect that to change in 2019 and ultimately unit prices will fall 10 per cent to 15 per cent from current levels.”

“In Brisbane, Perth and Adelaide, price corrections will be most evident in unit markets on account of high levels of supply, with house markets in Brisbane and Adelaide still likely to be more resilient.

“Perth houses, after a long period of negative pressure, appear to be close to, if not at, the bottom of their cycle.”

ResidentialAustraliaBrisbaneMelbournePerthAdelaideCanberrado not useReal EstateSector
AUTHOR
Dinah Lewis Boucher
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Why Sentinel is Betting Big on Olympic City Office Sector

Phil Bartsch
5 Min
The Port of Brisbane has released its Vision 2060 which details the need for inland rail connectivity
Infrastructure

Brisbane Port’s $15bn Future Faces One Big Obstacle

Renee McKeown
5 Min
Freecity Rouse Hill triple towers 2 Tempus Street
Exclusive

Freecity Takes Covers Off $330m Triple Towers in Sydney’s North-West

Leon Della Bosca
5 Min
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
Exclusive

Interstate Developers Find Lots to Love in ‘Progressive, Affordable’ SA

Taryn Paris
5 Min
View All >
Windsor Lutwyche Road DA hero
Development

Arch-Filled Commercial Strip Filed for Brisbane’s Northside

Phil Bartsch
Landcom The Joinery Annandale a build to rent development on the former westconnex site
Build-to-Rent

Landcom Takes Cover Off BtR Plans at Annandale

Renee McKeown
Exclusive

Why Sentinel is Betting Big on Olympic City Office Sector

Phil Bartsch
Warren Ebert reveals the one word behind his decision to spend $132 million on an asset in the city where he used to dri…
LATEST
Windsor Lutwyche Road DA hero
Development

Arch-Filled Commercial Strip Filed for Brisbane’s Northside

Phil Bartsch
3 Min
Landcom The Joinery Annandale a build to rent development on the former westconnex site
Build-to-Rent

Landcom Takes Cover Off BtR Plans at Annandale

Renee McKeown
3 Min
Exclusive

Why Sentinel is Betting Big on Olympic City Office Sector

Phil Bartsch
5 Min
Cromwell 19 National Circuit Barton ACT rendering HERO
Office

Cromwell Lands Lease for Canberra Office Block Scheme

Leon Della Bosca
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/housing-market-bottom-coming-closer-cbre