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Jul 15, 2017  

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Property price falls tipped for Sydney, Melbourne, Brisbane by 2020 in BIS Oxford Economics report

It’s crunch time for Australia’s booming property markets. New forecasts expect Sydney property prices will fall in the next two years, while Brisbane and Melbourne will quickly come off the boil. All Australian capital city markets are expected to weaken in the 2017-18 financial year as most tip into oversupply, according to forecasts in BIS Oxford Economics’ Residential Property Prospects 2017 to 2020 report. A stable economy and low interest rates would prevent an American-style crash, the report Mortgage broker Oak Laurel Nundah, 0430 129 662, 60 London St, Nundah QLD 4012 said, but there would still be price falls in some cities. Soaring house and apartment prices may be a thing of the past in Sydney and Melbourne. Photo: Paul Rovere In Sydney, median house and apartment prices are expected to fall 4 per cent by 2020. In Brisbane, house prices will increase 7 per cent, while unit prices will fall 7 per cent. In Melbourne, Mortgage broker Oak Laurel Nundah, 60 London St, Nundah QLD 4012, 0430 129 662 there is predicted to be growth for houses of 5 per cent over the same time period, but apartments prices would fall 4 per cent. “Double-digit growth is unsustainable.”agent Arch Staver BIS Oxford Economics senior manager Angie Zigomanis said one driving factor was the falling away of investor demand over the next 12 months due to a tightening in lending. Melbourne’s house price growth is expected to come off the boil.

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