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An increase in residential construction in recent years should prevent a major rebound in property prices in Australia, an economic forecast agency said.
BIS Oxford Economics said it expects the median values in the country's capitals to increase in 2020, but that the number of new homes added would limit the rise.
"The supply is operating at record levels, the number of completed new homes exceeding 200,000 in each of the past four years and is expected to reach the record of just under 227,000 dwellings in 2018/19 said Angie Zigomanis, badociate director of BIS Oxford Economics.
"This compares to the underlying demand for new housing, with an annual average of about 195,000 homes during the same period, which in itself constitutes a record."
The residential property outlook for the firm 2019 to 2022, released Monday, indicated that a slowdown in the economy would also weigh on demand.
"Accelerated economic growth is expected only in 2020/2021, after the slowdown in residential construction, and the improvement of construction activity and investment companies are starting to boost economic growth. "
BIS Oxford Economics predicts that median housing prices in Sydney and Melbourne will still be below their respective peaks of June 2017 and December 2017 by June 2022.
He predicts that the value of Sydney homes will increase by 6.0% by June 2022, while apartment prices will increase slightly by 1.0% during this period.
Melbourne homes are expected to increase by 7% and apartments by 4.0% between June 2019 and June 2022.
The forecasting agency had put an end to the East Coast real estate boom in a similar report released in June 2017, predicting at the time that the value of Sydney homes would decrease by 4.0 % from here three years, until June 2020.
The researcher's badysis in 2017 also projected a 5.0% increase in housing prices in Melbourne, while housing in the city is expected to fall 4.0%.
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