PHOTO: Australia’s property market is forecast to pick up steam by the second half of next year. Pic: Up (2009), Walt Disney.

  • Property prices in Australian capital cities are expected to diverge in the months ahead
  • But analysts say rock bottom interest rates should support the market into the second half of 2021

Australia’s property market is starting to find some momentum, according to the latest monthly price report from CoreLogic.

The pace of decline in Australia’s biggest market slowed, as Sydney house prices edged lower by 0.3 per cent in September.

Still feeling the drag from lockdowns, Melbourne prices fell by 0.9 per cent in September and have now dropped by 5.5 per cent since March.

But there were monthly gains across the other capitals, ranging from 0.2 per cent in Perth to a 1.6 per cent rise in Darwin.

The monthly result marks something of a turnaround in the two-speed housing market which prevailed for much of the last decade.

During that time, prices in Sydney and Melbourne doubled while property gains in most other capitals struggled to increase beyond the rate of inflation.

CoreLogic’s head of research Tim Lawless said the outperformance of smaller capital cities was in line with the fact that those jurisdictions had also had more success controlling the COVID-19 virus.

He also highlighted a shift in demand towards regional areas, particularly if they’re within commuting distance of larger cities