Melbourne to be strongest, but national housing market will slow in 2016: SQM Research

Melbourne to be strongest, but national housing market will slow in 2016: SQM Research
Melbourne to be strongest, but national housing market will slow in 2016: SQM Research
Dwelling prices across Australia in 2016 are tipped to rise at the slowest pace recorded since 2012, according to the Housing Boom and Bust Report by SQM Research.
 
The report predicts average capital city dwelling prices will rise between 3% and 8% for the full calendar year, down from the current 9.8% recorded for the 12 months to June 2015.
 
SQM managing director Louis Christopher said the slowdown will occur predominantly as a result of a slowing Sydney property market, which is forecasted to rise between 4% and 9% and Melbourne is forecasted to overtake Sydney and be the best outperforming capital city in 2016 with a forecast rise in dwelling prices of between 8% to 13%.
 
"Nationally, the rental market is likely to see a continued flat market with expected rental changes of between 0% and 3%. Darwin is tipped to record another year of significant declines in rents of -12% to -8%.  While Hobart is tipped to record the fastest rental growth of all capital cities at +5% to +8%," he said.
 
"This year, it has become quite apparent that rents have slowed, possibly as a result of the lower inflationary environment. We believe there is evidence that rents will slow further in 2016 with our average capital city forecast to be 0% to 3%. Perth and Darwin will experience the largest falls in rents however this is just part of an ongoing trend currently being recorded in these two cities. Hobart, Melbourne and the Gold Coast will likely record the strongest rental increases.
 
"We believe the threat of a massive oversupply in Melbourne has been overstated. Indeed our vacancy rates for that city have fallen for the year as population growth and housing formation have quickly absorbed the new stock being completed."
 
 
Melbourne to be strongest, but national housing market will slow in 2016: SQM Research
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Rental Yield Housing Market

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