Jul 23, 2018
Where will our property markets be in three
We’re going through a bit of a
rough time in the property cycle at present, which leaves a lot of
people wondering what comes next.
The availability of credit has
tightened, and we’re in the face of slumping prices in some places
and slower growth in others.
But don’t panic. The market is
Thoughts about where we’ll be in three
Oxford Economics suggests that we’re in for a soft
growth prices in Sydney and Melbourne are falling gently, and that
trend looks like it will continue, thanks to APRA’s tighter lending
- Taking inflation into account, there will
probably be modest declines in most capital cities over the next 12
months, and then fragmented price growth over the next three
- Although there is housing oversupply,
population growth over the next few years should absorb
downturn in Sydney will probably continue over the next year before
starting to rise again.
predicts Sydney’s median will fall by 2 per cent in the next
financial year (2018/19), but an undersupply of dwellings will
prevent larger price falls.
that have shown and proven themselves, like suburbs in the middle
and inner rings of Sydney, will continue to make the best
predicts that the Melbourne property market will grow by 6% between
2018 and 2021.
forecast is that Brisbane will see the strongest growth over the
next three years, jumping 13% to a median of $620,000.
creation and a low unemployment rate are contributing to the steady
population growth driving demand.
- Canberra house prices are forecast to increase
5 per cent over the next financial year before slowing over the
following two years, culminating in an overall rise of 10 per cent
house prices have declined by 13 per cent since 2014 but the worst
could be over.
prices in Hobart are set to rise by 5 per cent over the next year,
and then slow in following years.
prices in Adelaide are expected to grow by 9 per cent by
- Prices in Darwin are forecast to remain flat
over the upcoming financial year, followed by two years of limited
Links and Resources:
More details of the BIS Oxford
Rich Habits Poor
Michael Yardney’s Mentorship
Some of our favourite quotes from the show:
“Periods of strong capital
growth, like we’ve experienced in many of our capital cities over
the last couple of years, are always followed by periods of flat
growth, or sometimes no growth, or falling property prices. That’s
just how markets work.” – Michael Yardney
“Meteorologists tend to predict
the weather better than property commentators predict future
property capital growth.” – Michael Yardney
“What pushes property prices up
is people’s ability to afford more property, and their desire to
live in certain locations.” – Michael Yardney
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