Real estate markets across Australia are showing strong signs of rising, according to three separate reports from major institutions.
The Commonwealth Bank, ANZ Bank, and Genworth Mortgage Insurance all say that big city markets have passed the bottom of the trough and are rising again. This is supported by the latest price data from SQM Research and CoreLogic, which both recorded price uplift in most capital cities in July.
Commonwealth Bank, the nation’s largest property lender, says there are clear signs that big-city property markets are set for a rebound. Property prices will climb back into positive territory in the second half of the year and should generate positive returns in 2020.
Interest rate reductions, tax cuts, easier borrowing, rising population, and improved sentiment are combining to boost market activity and offer early evidence of sustained improvement. The return of a federal coalition government has removed fears of changes to negative gearing and capital gains tax.
“Home buying intentions have been in negative territory since 2018, but current readings suggest the market is turning,” CBA chief economist Michael Blythe says.
ANZ expects property prices to increase later this year following “a sharp turnaround in sentiment”.
According to the bank’s quarterly housing report, prices are bottoming out and will R