It would still be expensive to buy a house in Australia’s capital cities in the next three years, even if median prices fall as expected based on industry forecast.
A survey showed that prices in seven capital cities in the country would fall between 4.6% and 8.2% in 2021. Melbourne’s housing market will record the second biggest decline next to Sydney.
If you’re looking for a property in Melbourne as an investment, the city may no longer be a profitable destination over the long term. Prices have declined over the last year due to stricter lending standards. By 2019, the Reserve Bank Australia’s interest rate hikes could further pressure home prices toward a downward trend.
As a result, many homebuyers have been eyeing on suburban areas near the city as good alternatives. For instance, a house and land for sale in Whittlesea could be cheaper than in Melbourne. Even if prices in the Victoria capital fall by at least 10% next year, the monetary value of an average home would remain too expensive.
Homebuyers could play their cards right if they wait for the right opportunity to buy a house. Those who could wait until 2021 before buying a house in Sydney may save almost $80,000. Median prices in the city will decline to $892,526 from the current value of $972,250.
In Melbourne, average prices would fall to $680,060 from $740,000. Prices in Brisbane would cost almost $500,000 in the next three years from $536,000. Home values in Adelaide, Darwin, Hobart and Perth would also fall below $483,000 by the same period.
When choosing a property for sale in suburban areas, consider a master-planned development where there are only lots for sale or a house and land package. Where do you plan to buy a house over the coming years?