Sydney property market tipped to fall: BIS Shrapnel 2018
Median house prices in Sydney are tipped to fall a total of 4% over 2016/17 and 2017/18, with total price growth for three years until June 2018 forecast to be 2%, according to a new study.
The BIS Shrapnel Residential Property Prospects 2015 to 2018 expects a 'real decline' of 6% until 2018. The study noted Sydney’s estimated median house price of $960,000 in June 2015 marks a 45% increase over the past three years. Current price growth is driven by Sydney's undersupply of dwellings.
BIS Shrapnel senior manager and study author, Angie Zigomanis said strong population growth is preventing Sydney's housing deficiency being reduced quicker than expected.
“Regardless, completions will continue to rise, and the slow erosion of the deficiency will also coincide a forecast tightening in interest rate policy over 2016/17,” said Zigomanis.
“The combination of higher interest rates and recent price growth is expected to discourage both owner occupiers and investors, particularly as pent up demand pressures are beginning to ease.”
