HOW 2019 TURNED OUT
This time last year I wrote: “Most analysts have predicted solid growth in the smaller capital cities, outperformance by specific regional markets and an easing of the Sydney/Melbourne downturns towards the middle the year.”
Many of the locations that delivered double-digit price growth in 2019 were regional centres, notably in Victoria and Tasmania. Some regional markets in NSW and Queensland also performed well. Hobart continued to be the capital city leader on price growth and selected markets in Brisbane and Adelaide outperformed. Sydney and Melbourne started to recover after a series of fortunate events in May and June, including the election result and the measures to relax lending.
This time last year I wrote: “There’s an expectation that the tougher lending environment will be relaxed this year, nudged by the federal government and some of the major regulators, including the Reserve Bank.”
APRA announced it was relaxing its criteria on real estate lending in the week after the May federal election. The federal government launched tax cuts and assistance for young buyers – and the Reserve Bank began to trim the official interest rate.
This time last year I wrote: “The elephant in the room is the federal election. Consumers tend to delay major decisions when a national election looms …”
Real estate consumers, especially investors, went on strike in the early months of 2019. People refuse to make big spending decisions in a climate of uncertainty and Labor’s policies on property taxes had many people worried. Once the election was sorted, real estate began to revitalise. The turnaround in major markets began with the election result and built on the series of fortunate events that followed.
This time last year I wrote: “Now, more than ever, it’s important to be aware that it’s not all about the big cities.”
Many of the smaller markets thrived in 2019, including in the early part of the year when the big cities were declining or stagnating. Regional markets like Ballarat in Victoria and the Sunshine Coast in Queensland delivered strong price growth, while Hobart and Canberra led the capital cities