David Koch says residential property will be 'tricky' in 2017

David Koch says residential property will be 'tricky' in 2017
David Koch says residential property will be 'tricky' in 2017

Two official interest rate hikes and a slowdown in the Sydney property market were predicted in 2016 by David and Libby Koch who, when analysing predictions they made 2016, forecasted the property market this year will be 'tricky'.

In their latest column for News.com.au, the pair predicted the Sydney property market will slow in 2017.

"Sydney has slowed without crashing, Melbourne has slowed but still stronger growth than we expected, Hobart was better than we thought as was Canberra," they said.

"Perth was still pretty bad although we thought it would have turned."

In their current predictions for 2017 they noted the cost of money is set to change and the impact of rising interest rates (both official and bank induced) on the back of the US and European trends is hard to predict, but there will be a fallout.

"The expected big increase in new properties coming to market will tip the demand and supply balance more in favour of buyers," they said.

"Overall, the slowdown in property prices will continue for Sydney and Melbourne while Brisbane will take a bit of a hit as well.

"Darwin and Perth property declines look to be bottoming out while Adelaide, Canberra and Hobart will stay positive but flat.

"Up until the September quarter residential property prices rose in Melbourne (+6.9 percent), Hobart (+6.8 percent), Canberra (+5.5 percent), Sydney (+3.2 percent), Adelaide (+3.2 percent) and Brisbane (+3.1 percent), and fell in Darwin (-7.2 percent) and Perth (-4.0 percent).

Tags: 
Housing Market Residential Investment

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