Chapter 7
City Outlook
Australia Real Estate Market Outlook 2020
5 Minute Read
CBRE’s Market Outlook 2020 features six city-focused reports that provide granular insight into Australia’s larger capital cities that are unique in underlying economic drivers and property market characteristics.
Cranes and construction sites are widespread in Sydney and Melbourne where infrastructure, housing and non-housing construction is changing the face of Australia’s largest cities.
Brisbane is benefitting from migration from the southern states that is contributing to low levels of residential vacancy, which combined with falling levels of new residential supply will cause dwelling price growth to accelerate this year.
Perth is seeing another crop of green shoots sprouting; there is optimism that this time they will continue to grow.
The South Australia Government is striving to turn Adelaide into an innovation hub and turn interstate migration inwards instead of outwards.
Canberra has seen an absence of new office supply over recent years but that will change in the years ahead. Construction of residential apartments is at heightened levels which will exert downward pressure on rents and values.
City Outlook
The state government’s emphasis on infrastructure projects and creating innovative industries will ensure that the lifestyle factors that make the city great remain well into the future.
There are positives for the Queensland economy at the start of 2020 across various sectors including construction, retail and residential.
The office sector’s shortage of new supply in recent times is about to end with new, high-quality stock set to be delivered over the next few years.
Victoria’s strong population growth has driven solid economic and job growth and allowed the state economy to weather a slowdown in the residential sector across 2018 and 2019.
Having formed a solid foundation in 2019, the Western Australian economy and Perth property markets are poised to build momentum throughout 2020 and beyond.
Despite rent growth now slowing from the highs seen in recent years, Sydney office and industrial assets remain keenly sought after by investors.