Leading Australian developer Crown Group has enjoyed a strong boost in sales of over AU$46 million during the last three months and is confident of a promising year in 2020 as Australia’s property market continues to return to buoyancy.
Crown Group Director of Sales Prisca Edwards said confidence had returned to the market across the nation, which was starting to show in Crown Group’s sales results. Across the market generally, this year’s series of Reserve Bank interest rate cuts and the start of the traditionally strong spring-summer sales season had seen buyers return in the nation’s two biggest markets, Sydney and Melbourne, and positive growth in Brisbane.
Sydney enjoyed its second busiest auction week of the year during the second week of November, recording a preliminary (auction) clearance rate of 81 per cent and 664 sales.
A backlog of buyers from winter and limited stock also led to a surge in prices in Australia’s two biggest property markets over October, with unit values increasing 1.85 per cent with the median value of $720,658 in Sydney and 2.37 per cent with the median value of $558,254 in Melbourne.
Nationally, dwelling values grew by 1.2 per cent, the fourth straight month of rising values since July 2019, and the largest monthly gain since May 2015, according to The CoreLogic Home Value Index.
Economists predict that restricted supply of new apartments, indicated by a 20 per cent slump in apartment approvals in July, combined with record low interest rates, could spark a quick rebound in house prices in the months ahead.
AMP Capital Chief Economist Shane Oliver has forecast price growth of about 5 per cent in Sydney and Melbourne in 2020 and an equal increase in 2021, consistent with HSBC’s forecast – single-digit house price growth in 2020 for both Sydney and Melbourne. Mrs. Edwards said sales of apartments had strong growth in August, September and October.
“Crown Group enjoyed a strong surge in sales during the last three months and we expect to see that continue to grow exponentially in 2020,” she said.
“In August, we sold our Sydney developments worth a total of $19.2 million, and in September and October the figures remain strong with over 11 million in sales each month. We see a very strong year ahead, marked by the renewed interest from buyers because of solid market fundamentals: low interest rates, low supply and growing demand.”