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17-09-2014, 01:05 PM
Report tips more house price hikes
THE AUSTRALIAN SEPTEMBER 17, 2014 2:52PM
Greg Brown
Property Reporter
Sydney
AUSTRALIA’S capital city housing boom is set to continue into mid next year despite many experts predicting a slowdown, with prices to increase nationally by up to 9 per cent, according to SQM Research.
In a report released today, SQM forecasts Sydney’s house prices will rise between 8 per cent and 12 per cent in the year to June 2015, while Melbourne’s prices will increase between 5 and 9 per cent.
Prices in Sydney and Melbourne rose 15.6 and 9.3 per cent respectively in the year to June, meaning SQM expects only a modest slowdown.
Brisbane would perform better than last year, with growth of between 5 and 8 per cent in the coming year, while price growth in Adelaide (up to 7 per cent), and Hobart (up to 6 per cent) may also improve.
The report said there could be slowdown in Perth and Canberra, with Perth’s prices growing 1 to 4 per cent and Canberra potentially seeing prices range between a fall of 2 to a 3 per cent rise.
The forecasts are conditional on interest rates remaining unchanged and the Australian dollar staying above $US0.85. SQM expects lower growth if rates rise.
SQM managing director Louis Christopher said that, while the market was overvalued, claims by many analysts were overstated.
“I don’t believe at this stage the market is in a bubble. Some cities are heading into overvalued territory, but the point overall is the market is far from a bubble situation when taking into account historical valuations over the past 30 years,” Mr Christopher said.
THE AUSTRALIAN SEPTEMBER 17, 2014 2:52PM
Greg Brown
Property Reporter
Sydney
AUSTRALIA’S capital city housing boom is set to continue into mid next year despite many experts predicting a slowdown, with prices to increase nationally by up to 9 per cent, according to SQM Research.
In a report released today, SQM forecasts Sydney’s house prices will rise between 8 per cent and 12 per cent in the year to June 2015, while Melbourne’s prices will increase between 5 and 9 per cent.
Prices in Sydney and Melbourne rose 15.6 and 9.3 per cent respectively in the year to June, meaning SQM expects only a modest slowdown.
Brisbane would perform better than last year, with growth of between 5 and 8 per cent in the coming year, while price growth in Adelaide (up to 7 per cent), and Hobart (up to 6 per cent) may also improve.
The report said there could be slowdown in Perth and Canberra, with Perth’s prices growing 1 to 4 per cent and Canberra potentially seeing prices range between a fall of 2 to a 3 per cent rise.
The forecasts are conditional on interest rates remaining unchanged and the Australian dollar staying above $US0.85. SQM expects lower growth if rates rise.
SQM managing director Louis Christopher said that, while the market was overvalued, claims by many analysts were overstated.
“I don’t believe at this stage the market is in a bubble. Some cities are heading into overvalued territory, but the point overall is the market is far from a bubble situation when taking into account historical valuations over the past 30 years,” Mr Christopher said.