The full landscape of the residential property market could be shaped by a multitude of concerns, including tighter lending restrictions, fear of changes to capital gains taxes, political uncertainty, unit oversupply and a sharp drop in dwelling commencements.
Restrictions on foreign investment and fund transfers, crackdowns by the Chinese government and fears of Labor government changes are also impacting the market. With the Federal election this year likely to be won by the ALP, the impact on the housing market may reach in to 2021.
Sydney is expected to see price reductions of around 4-6 per cent per annum in 2019 and 2020, while Melbourne will see similar reductions at around 4-7 per cent. Modest growth pace in housing for Queensland is expected to continue in varying levels across the state.
High unemployment rates and low population growth have led to weak housing demand in the South Australian economy. Western Australia is currently providing negative capital growth for houses and units. Tasmania leads the country with high median rental returns and a low average dwelling price, although even here signs of a slowdown are emerging and are expected to continue further into 2020.