PHOTO: Australian Homes

  • Sydney forecast to rise by up to 12% in 2020, Melbourne 14%
  • Rebound comes as lending restrictions eased, rates cut

HSBC Holdings Plc has more than doubled its forecast for Australian property price increases next year as low interest rates and looser borrowing rules send buyers flooding back into the market.

The bank now expects nationwide prices to rise by 5% to 9% in 2020, up from previously expected gains of 0% to 4%, Paul Bloxham, HSBC’s chief Australia and New Zealand economist, said in a note on Tuesday.

Major cities Sydney and Melbourne are expected to lead the charge, as in the previous boom. HSBC is now forecasting gains of 8% to 12% in Sydney next year and 10% to 14% in Melbourne.

The rapid turnaround in the market, where just six months ago the question was how much further prices would fall, comes at a time when the overall economy is weakening. The Reserve Bank of Australia has cut interest rates three times since June in an attempt to boost hiring and investment, but so far the main impact of the easing seems to have been to push housing prices higher.

READ MORE VIA BLOOMBERG 


No Comments

  1. It’s great that you are getting thoughts
    from this piece of writing as well as from our discussion made
    here.

  2. Good information. Lucky me I recently found your site by accident (stumbleupon).

    I’ve saved it for later!

  3. It’s amazing to go to see this site and reading the views
    of all friends regarding this piece of writing, while I am also zealous of getting know-how.

  4. I truly love your website.. Excellent colors & theme.
    Did you make this amazing site yourself?
    Please reply back as I’m hoping to create my own website and want to find out where you got this from or just what the theme is called.

    Thank you!

  5. If you are going for finest contents like myself, only go to see this website everyday as
    it gives feature contents, thanks

  6. Very good write-up. I absolutely appreciate this site.

    Thanks!

  7. Great web site you have got here.. It’s difficult to find high-quality writing like yours these days.

    I really appreciate people like you! Take care!!

Don't be shy! Have your say....