Real estate pundit John McGrath believes the growth in Sydney’s house values is set to be down 5% to 8% as the country’s housing market steadies.
He also predicts southeast Queensland will overtake Sydney’s residential market. Prices in Queensland will rise 10% to 12% this year, he added.
“Queensland will be the best performer for the next year or two,” McGrath said.
“That market hasn’t seen the growth Sydney has of 14-15 per cent per annum in last couple of years and southeast Queensland has only just shifted off the bottom.”
Along with southeast Queensland, he expects Sydney’s prestige market to be competitive.
“Last year most of the capital growth was in under $3m (price range). The top end hasn’t seen the same growth. The strong growth recorded from our Mosman office (a 167% increase on December 2013 to sales of $60.3m) is in line with our view that the prestige market will perform very well this year after a relatively quiet year in 2014 compared to the rest of the market.”