Australia’s capital cities are expected to see higher capital gains this year, according to a forecast by the Domain Group.
Sydney’s median house price may grow 8% this year, despite it experiencing 14% growth in 2014.
Brisbane, on the other hand, is expected to spike by 6%, after a 5.9% increase last year.
The figure is slightly different for Melbourne, which is forecast to drop from 4.1% in 2014 to 4% this year. Adelaide may suffer more with a decline from 4.6% to 4%.
However, Domain Group is seeing other increases for capitals like Hobart, where the climb is expected to be from 2.1% to 4%, and in Perth where the rise is set from 0.6% to 2%.
Canberra is also deemed to have a jump from 0.9% to 2%. Darwin is expected to come from negative growth of 2.5% to positive growth of 2%.
“The February cut in interest rates, although not providing significant improvement to affordability, has nonetheless impacted buyer confidence and reinforced underlying market dynamics,” Domain Group senior economist Andrew Wilson said.
“Sub-market activity will remain mixed, with growth prospects in the mid- to higher-priced brackets continuing to be the strongest performers of most local markets overall. The prestige market, which has been relatively subdued over recent years, should benefit from a rising stock market to finally regain its previous peak levels of 2007.”
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