Perth's house price falls to continue: Paul Bloxham's 2017 forecast

Perth's house price falls to continue: Paul Bloxham's 2017 forecast
Perth's house price falls to continue: Paul Bloxham's 2017 forecast

The end of the mining boom has driven house prices in Perth down throughout 2016, with the trend expected to continue in 2017, according to HSBC.

Paul Bloxham, HSBC senior economist said falls from between 4 and zero percent are expected.

"The offsetting impact has been low interest rates, which have supported household disposable incomes," he said.

"We expect the adjustment of the Western Australian economy to lower commodity prices, following the end of the mining boom, has further to run, despite the recent lift in iron ore prices.

"Part of the adjustment is coming through slower population growth, as people move to the eastern states. Weaker population growth is also expected to continue to weigh on the Perth housing market in 2017. "

Housing price growth of between 4 and 6 percent is expected for 2017 for both detached houses and apartments nationally supported by strong population growth.

Apartment price falls are possible in Brisbane and Melbourne in 2017 due to oversupply.

Low single-digit rates of housing price growth are predicted in 2017 for Sydney.

Tags: 
Perth Property Prices

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