Invest
Another house price surge predicted in hot markets
Despite many suggesting that property prices in Sydney and Melbourne will mellow over the next twelve months, one economist says we should be expecting more growth instead.

Another house price surge predicted in hot markets
Despite many suggesting that property prices in Sydney and Melbourne will mellow over the next twelve months, one economist says we should be expecting more growth instead.

With Sydney house prices doubling since the GFC and Melbourne not too far behind, many remain doubtful that such growth is sustainable.
There is one dissenting voice however. ABC Bullion chief economist Jordan Eliseo has predicted that a soft Australian economy would see the RBA slash official interest rates, driving even more property price growth.
“I think the RBA is going to be forced to cut rates before too long which will stimulate more buying and there’s still more of a foreign property bid as well, particularly in the Sydney and Melbourne markets which has not fully played out either,” Mr Eliseo told Nest Egg.
“I definitely wouldn’t be surprised to see another 5 to 10 per cent of upside in the Sydney and Melbourne markets.”
With the latest string of regulations announced just two weeks ago from APRA and ASIC, Mr Eliseo said the RBA will now be more comfortable to cut rates to further to stimulate a soft Australian economy.
“If you look at what’s happened over the last few weeks with APRA and ASIC as well as the RBA warning on property, I think what we’re basically seeing is the baton being passed to APRA in particular and that will provide the cover it needs to justify its next round of cuts,” he said.
“I think rates will be at least 1 per cent in Australia, possibly even a fraction lower given that unfortunately the Australian economy outside of Sydney and Melbourne is incredibly soft and I think at the end of the day, the RBA has a mandate to take into account both inflation and unemployment right around the country, not just bubble management in Sydney and Melbourne.”
Despite greater investor lending regulation, auction clearance rates over the weekend averaged around 80 per cent for both Sydney and Melbourne.
While there remains potential further upside in the two property markets, Mr Eliseo warned investors against chasing speculative growth.
“That doesn’t mean they’re good investments and the yields are certainly atrocious right now. Buyers getting into the market now are trying to catch the last wave, as it were, before the tide goes out,” he said.
“That’s certainly not what a value investor or a prudent applicator of capital would do, but I still think a lot of people will.”

Property
Apartment rents tumble off the cliff in Sydney and Melbourne
Apartment rents have fallen off a cliff in Sydney and Melbourne on the back of collapsing demand among internationals students and migrants, and changes to personal finances. ...Read more

Property
RBA’s 30% property growth forecast to materialise in 75% of regions
Experts believe that RBA’s forecasted 30 per cent growth in property prices over the next three years will materialise in 75 per cent of Aussie regions. ...Read more

Property
HomeBuilder applications soar as first-timers enter the market in record numbers
Record numbers of first home buyers are coming into the market assisted by the government’s HomeBuilder stimulus, which is expected to help spur $50 billion in economic activity. ...Read more

Property
Dual Occupancy Homes – Why They Are A Smart Investment In The Current Market
Promoted by Metricon ...Read more

Property
4 factors affecting property market trends in 2021
Following a tough 2020, property investment activity is expected to rebound strong, expanding by 50 per cent in the second half of 2021. ...Read more

Property
House prices tipped to surge 30% on the back of cheap money
According to new documents released from the Reserve Bank of Australia, persistently low interest rates could push up property prices by as much as 30 per cent. ...Read more

Property
Double-digit price growth to stick around as ‘property boom’ arrives
According to leading indicators, Australia’s property boom officially began in November, following several slow months on the back of the COVID crisis, with double-digit price growth already logged ...Read more

Property
How to turn your ‘costly’ lifestyle investment into a money-making asset
Emotionally driven holiday home buyers are being advised to seek maximum rental income and depreciation benefits to make their investments viable. ...Read more

Property
Apartment rents tumble off the cliff in Sydney and Melbourne
Apartment rents have fallen off a cliff in Sydney and Melbourne on the back of collapsing demand among internationals students and migrants, and changes to personal finances. ...Read more

Property
RBA’s 30% property growth forecast to materialise in 75% of regions
Experts believe that RBA’s forecasted 30 per cent growth in property prices over the next three years will materialise in 75 per cent of Aussie regions. ...Read more

Property
HomeBuilder applications soar as first-timers enter the market in record numbers
Record numbers of first home buyers are coming into the market assisted by the government’s HomeBuilder stimulus, which is expected to help spur $50 billion in economic activity. ...Read more

Property
Dual Occupancy Homes – Why They Are A Smart Investment In The Current Market
Promoted by Metricon ...Read more

Property
4 factors affecting property market trends in 2021
Following a tough 2020, property investment activity is expected to rebound strong, expanding by 50 per cent in the second half of 2021. ...Read more

Property
House prices tipped to surge 30% on the back of cheap money
According to new documents released from the Reserve Bank of Australia, persistently low interest rates could push up property prices by as much as 30 per cent. ...Read more

Property
Double-digit price growth to stick around as ‘property boom’ arrives
According to leading indicators, Australia’s property boom officially began in November, following several slow months on the back of the COVID crisis, with double-digit price growth already logged ...Read more

Property
How to turn your ‘costly’ lifestyle investment into a money-making asset
Emotionally driven holiday home buyers are being advised to seek maximum rental income and depreciation benefits to make their investments viable. ...Read more