Perth house prices are likely to fall by three to five per cent this year as the mining dependent economy teeters on the verge of recession.
National Australia Bank (NAB) expects the residential property sector to remain weak in Western Australia as lower commodities prices force companies to shed staff and population growth slows.
Sydney’s property prices grew 16 per cent over 2015, but the market is expected to slump to just 4 per cent growth next year, new forecasts show. It’s expected to slow dramatically as investors continue their exodus from the market, according to Domain Group’s State of the Market Report.
The predicted median house price growth of 1.9% in 2016, before rising oversupply and slower economic activity halt price growth in 2017 and induce a 1.1% decline in 2017/18. Units are forecast to perform at a similarly dismal rate, with negative growth of 1% predicted by June 2018.
Domain’s new housing prospect report for 2016 reveals the market is expected to rise only slightly, with growth predicted to remain about 3 to 4 per cent.
Brisbane suburbs have experienced healthy growth over the past year. Photo: Michelle Smith
While a solid 4 per cent growth in 2016 would be an improvement on this year’s expected 3 to 4 per cent, the gains will likely come from Brisbane’s outer suburbs.
According to SQM’s Louis Christopher predicts Melbourne dwelling prices booming by 10–15%. Melbourne’s expected to outperform Sydney by some distance.
Australian property prices will rise next year at their slowest pace in three years and Melbourne will overtake Sydney as the best performing capital city market.