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
Could the property market be booming by Christmas?
In what’s a far cry from the large drops seen in the property market just six months ago, a property researcher believes parts of Australia will see a boom by Christmas, growing as much as 20 per c...Read more
Property
A ‘perfect storm’ for mum and dad investors: NSW rental moratorium
The NSW government’s decision to extend its rental moratorium has been hit with criticism, with flow-on effects set to severely impact mum and dad investors. ...Read more
Property
3 property myths likely to trap investors
Property investors are being advised that three common myths about property could potentially see them make poor investment decisions. ...Read more
Property
Are we nearing another property boom?
There’s a secret to knowing when the property cycle will take its next turn, and it's not as far away as some may think, according to a property expert. ...Read more
Property
Hot Property: Biggest headlines this week
Based off anecdotal accounts, the property industry is gearing up for a strong spring season: Here are the biggest property stories from this week. ...Read more
Property
Ace a rental application in 5 simple steps
In many areas across Australia, the rental market is becoming increasingly competitive, so how do you ensure your application will stand out? ...Read more
Property
Population falls could see Australia with 232,000 vacant dwellings
The shutdown of international borders could cut demand for Australian housing by as much as 232,000 dwellings over the next three years, according to research. ...Read more
Property
How will border closures impact the property market?
Despite falling migration levels, property prices might not be impacted as much as investors think, an industry expert has explained. ...Read more
Property
Could the property market be booming by Christmas?
In what’s a far cry from the large drops seen in the property market just six months ago, a property researcher believes parts of Australia will see a boom by Christmas, growing as much as 20 per c...Read more
Property
A ‘perfect storm’ for mum and dad investors: NSW rental moratorium
The NSW government’s decision to extend its rental moratorium has been hit with criticism, with flow-on effects set to severely impact mum and dad investors. ...Read more
Property
3 property myths likely to trap investors
Property investors are being advised that three common myths about property could potentially see them make poor investment decisions. ...Read more
Property
Are we nearing another property boom?
There’s a secret to knowing when the property cycle will take its next turn, and it's not as far away as some may think, according to a property expert. ...Read more
Property
Hot Property: Biggest headlines this week
Based off anecdotal accounts, the property industry is gearing up for a strong spring season: Here are the biggest property stories from this week. ...Read more
Property
Ace a rental application in 5 simple steps
In many areas across Australia, the rental market is becoming increasingly competitive, so how do you ensure your application will stand out? ...Read more
Property
Population falls could see Australia with 232,000 vacant dwellings
The shutdown of international borders could cut demand for Australian housing by as much as 232,000 dwellings over the next three years, according to research. ...Read more
Property
How will border closures impact the property market?
Despite falling migration levels, property prices might not be impacted as much as investors think, an industry expert has explained. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
