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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