Melbourne and Sydney house prices to go down, predicts Propell
According to the September residential report by valuation company Propell, home buyers are likely to witness house prices slowdown for the next five years but apartment prices will surge at the same rate just like the last five years.
The report stated that Sydney house prices across a year will only increase by 5 percent as compared to last year’s 18.6 percent growth. Although Sydney house prices jumped by leaps and bounds over the last three years, its prices will continue to rise as growth slows down. The excess demand for housing is one of the reasons for the prices to grow which is not bound to be satisfied by the existing stock.
On contrary in Melbourne, price growth rate has been moderate and the city contains more places to live than Sydney. As a result of the fair value, home buyers are more attracted to invest in Melbourne’s housing market. Propell has predicted that price rise in Melbourne will go up to 5 percent across a year as compared to 11.5 percent in the past year.
Melbournians will face a price drop in case of apartments, with a price growth of 2 percent in the next year as compared to 2.9 percent in the past 12 months.
Around the rest of the country, average price growth hasn’t been of much difference. If compared, across the last five years, home prices outside of Sydney and Melbourne also have hardly changed. Adelaide and Canberra have witnessed a price surge of only 0.7 percent in the past five years, whereas Brisbane’s and Perth’s house prices have increased by 0.5 percent. Prices have been plunging in both Brisbane and Perth in the recent times. In case of Hobart and Darwin, prices have touched lower than last five years’ rate.
Meanwhile, the report showed that the country’s economy has been weakening, with the RBA reducing its expectation of growth next year to 2.5 percent.
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