Recent events on the political and financial landscapes have boosted sentiment in residential markets. This leads us to believe that the trough in pricing in most markets will be reached by the end of 2019. Moreover, it appears that the peak to trough price corrections in Sydney and Melbourne will not be as substantial as previously forecast.
Brisbane and Adelaide were the only mainland capital city housing markets that have recorded price growth in the year to March 2019. Adelaide and Canberra are the only unit markets that recorded price growth.
Despite the outlook improving, dwelling supply over the next 12-18 months will be lower based on the declining trend in dwelling approvals. This, however, will allow supply overhangs to be absorbed.