Capital city house prices to jump 5% this year, forecast claims

Font size :
A new study forecasts an increase of 5% this year for capital city house prices, thanks to strong growth in Sydney and Brisbane.
 
Data from the Australian Bureau of Statistics showed last year’s capital city home values were up 6.8%, prompted by the 12.2% climb in the average cost of Sydney real estate.
 
“Buyer confidence has been boosted with the Reserve Bank’s recent interest rate cut and we’ve seen a solid start to 2015 in most markets,” said Andrew Wilson, senior economist at the Domain Group which created the study.
 
“We are expecting buyer activity to remain solid through the autumn selling season and then moderate as we head into spring.”
 
Despite the predicted price increase at 5% for capital city houses, Sydney and Brisbane are expected to top this number with 8% and 6%, respectively.
 
“Sydney’s resilience is largely driven by its property shortages and economy, however investor activity remains at record levels and this is another key driver of the price growth being seen,” Wilson said.
 
Perth, Canberra and Darwin are facing the opposite predictions, as the study claims they are this year’s laggards once again.
 
“Declining local economies spell fairly modest growth of around 2% for Darwin, Canberra and Perth,” Wilson said.
 
“[Meanwhile], Melbourne, Adelaide and Hobart are in for another positive year, with moderate growth of between 3% and 5% likely.”
 

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Monday, Sep 25, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords