Sydney, Melbourne residential property prices to continue upward
A survey of property valuers, financiers and market analysts has predicted property prices in Sydney and Melbourne will continue to increase for the next six to twelve months.
44% of respondents to The Property Directions Survey, released by the Australian Property Institute, found an upward trend will continue for a further six months in Sydney, while 50% think the same of the Melbourne market with 33% of respondents believing the upward trend will last a further 12 months in both Sydney and Melbourne.
API NSW President, George Vallas, said the responses were received prior to several financial institutions raising interest rates, which may have changed some views.
"50% of respondents indicating Sydney residential property is in or is entering a bubble, while 50% indicate it is not in a bubble," he said.
"For Melbourne, 56% of respondents believe residential property is in or is entering a bubble, while 44% believe it is not in a bubble. For Brisbane, 70% of respondents indicate that residential property is not in a bubble, 24% indicate that it is in or is entering a bubble and 6% are unsure.
Low interest rates were seen as a significant to very significant driver of the Sydney residential property market, with 88% seeing foreign investment as significant to very significant.
