Residential property prices elevated 2.4 percent in the September quarter 2019, says figures released Tuesday; marking the strongest growth by quarter since the year 2016.

After nearly two years of prices descending at a rate of 10-15 percent in Sydney and Melbourne, the housing market has transformed with the assistance of three cash rates cuts—now standing at a record low of 0.75 per cent.

In related news, the Australian Prudential Regulation Authority is relaxing lending laws that called upon banks to assess all borrowers against their capability to repay the loan at a rate of 7 percent.

The market has rebounded with values just 3.7 percent lower than they were a year ago across capitals, with competition boosting among home buyers across the nation.

House prices in the nation’s two largest cities underwent a noted uptrend throughout the September quarter, with many buyers benefitting from lower prices.

Sydney and Melbourne residential property prices showed formidable growth in the September quarter 2019, with both communities seeing a 3.6 per cent increase.

Hobart saw a boost of 1.3 percent, with Brisbane values also escalating 0.7 percent. In the meantime, Perth and Adelaide both noted declines.

In another hopeful sign, the weekend’s auction clearance rates in Sydney stood at 79 percent, a 47 percent rise from during the same period last year.

In Melbourne, clearance rates achieved a rate of 74 percent, showing an increase of 45 percent as opposed to the previous corresponding period.

In the future, Moody’s Analytics estimates that Sydney house prices will escalate 7.7 per cent next year and an additional 7.6 percent by 2021.

Melbourne is predicted to achieve 7 percent growth next year and an additional 7.8 percent growth in 2021.

A marked growth in population, a supply shortage, and a kick back in the prices of houses also could reignite the downturn in construction projects, which contracted for a 15th consecutive month in November.

The Commonwealth Bank of Australia says that the continued decline in housing construction, with declining approvals indicating additional declines in activity—will prompt an undersupply of housing from late in 2020.