Sydney and Hobart prices to drop over 10 percent by 2021: Finder

Sydney and Hobart prices to drop over 10 percent by 2021: Finder
Sydney and Hobart prices to drop over 10 percent by 2021: Finder

Nearly six in 10 experts in Finder.com.au's RBA Cash Rate Survey say now is not a good time to buy property.

Experts and economists have predicted nationwide price falls, with Sydney and Hobart being the hardest hit, both declining over 10 per cent.

Darwin and Melbourne will both see over nine per cent declines, while over eight per cent drops will be felt in Brisbane, Perth and Adelaide.

Canberra is predicted to weather the storm the most, with 6.4 per cent declines forecast.

Sydney and Hobart prices to drop over 10 percent by 2021: Finder

Graham Cooke, insights manager at Finder, said with increasing unemployment and growing economic uncertainty house prices will slide over the rest of the year. 

“Both househunter and seller demand has weakened in the last month as Australians hunker down to help stop the spread of coronavirus," Cooke said.

“It’s not just experts, we’ve also seen consumer sentiment about whether it is a ‘good time to buy’ drop from a peak of 60% in July 2019 to just 42% in April."

Unemployment is a key reasons for the envisaged price falls.

John Rolfe, head of Elders Home Loans expects unemployment to go as high as 18%.

Noel Whittaker, executive in residence and adjunct professor at QUT Business School said the full impact of COVID-19 is yet to be understood.

“This recession will be far worse than the government imagines...they can't close down so many businesses and not expect a severe hangover. 

“As for real estate, it's never a bad time to buy a bargain,” Whittaker said. 

Susan Mitchell at Mortgage Choice said social distancing measures had "knocked the wind out of the sails of the property market."

"Time will tell if this will translate to declining dwelling values," she said.

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

Tags: 
Sydney Price Decline

Community Discussion

Be the first one to comment on this article
What would you like to say about this project?