Invest
Property market ‘shakeout’ predicted, amid oversupply
With the rate of construction soaring in recent years, Australian housing prices are predicted to feel the impact of an oversupply.
Property market ‘shakeout’ predicted, amid oversupply
With the rate of construction soaring in recent years, Australian housing prices are predicted to feel the impact of an oversupply.
HSBC chief economist Paul Bloxham says two Australian cities in particular are likely to feel the brunt of apartment oversupply.
“We do think there’s a bit of a shakeout to come in the apartment market in Brisbane and Melbourne where there’s evidence that there may be some oversupply in the coming years,” Mr Bloxham told nest.egg.com.au.
“More broadly, however, we’re not of the view that there’s going to be a house price decline in those cities. We think that’ll affect apartment prices but it won’t directly affect their house prices.”
Meanwhile, economist and senior fellow of think tank Per Capita, Stephen Koukoulas believes ramped up supply in Sydney and Melbourne could see house prices take a fall.
“We’re building an incredible amount of dwellings at the moment, apartments in particular, as well as houses so that undersupply that has dogged us previously is now being addressed. There’s no question that we’re going to have weakness in house prices but it’s difficult to work out how much,” Mr Koukoulas told nestegg.com.au.
“My educated guess based on supply and demand, and throwing in interest rates and these sorts of things is that we’re going to have house prices flat or down a few per cent. It’s a welcome change as it brings a bit of stability back into the overall housing market when we’ve had this incredible run up in prices.”
Mr Bloxham is more optimistic that price growth will continue to cool in Sydney and Melbourne without seeing a drop.
“Those housing markets are already cooling and while house prices are still growing, they have cooled down from their pace last year. That partly reflects tighter lending standards on the part of the financial sector, slowing down the pace of credit growth,” he said.
“More supply is coming to market as more and more apartments are being built, slowing down house prices to a degree. We think those two factors are likely to keep slowing house price growth over the coming year.
“We have price growth at single digits next year.”
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
Sydney, Brisbane, Melbourne tipped to surge: Westpac
One of Australia’s largest banks is forecasting strong growth in the housing market as low interest rates and availability of credit pushes prices up, despite the country being in its first recessio...Read more
Property
Is now the right time to make a tree or sea change?
The experience of isolating in our homes and suburbs has made many people reconsider what they actually value in a home, writes David Hancock. ...Read more
Property
Hot Property: Biggest headlines this week
Victoria’s COVID-19 restrictions have begun to lift as the rest of the country watches on: Here are the biggest property stories from this week. ...Read more
Property
Post-pandemic hotspots revealed
With investors eyeing investment opportunities, which hotspots are set to benefit? ...Read more
Property
Houses fall by nearly $100bn
The COVID-19 pandemic has seen a correction in the housing market, with capital cities falling by $98 billion in total value, official figures have shown. ...Read more
Property
Could changing tax law boost regional property prices?
Property investors are urging the Australian government to change tax deductions for travel expenses related to their investment property as a way to stimulate the regional housing market. ...Read more
Property
The importance of statistical weighting in property data
Investors are being urged to deep dive into the data, with statistical weighting likely to show property nationally has fallen despite many regions still performing strongly, 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
Sydney, Brisbane, Melbourne tipped to surge: Westpac
One of Australia’s largest banks is forecasting strong growth in the housing market as low interest rates and availability of credit pushes prices up, despite the country being in its first recessio...Read more
Property
Is now the right time to make a tree or sea change?
The experience of isolating in our homes and suburbs has made many people reconsider what they actually value in a home, writes David Hancock. ...Read more
Property
Hot Property: Biggest headlines this week
Victoria’s COVID-19 restrictions have begun to lift as the rest of the country watches on: Here are the biggest property stories from this week. ...Read more
Property
Post-pandemic hotspots revealed
With investors eyeing investment opportunities, which hotspots are set to benefit? ...Read more
Property
Houses fall by nearly $100bn
The COVID-19 pandemic has seen a correction in the housing market, with capital cities falling by $98 billion in total value, official figures have shown. ...Read more
Property
Could changing tax law boost regional property prices?
Property investors are urging the Australian government to change tax deductions for travel expenses related to their investment property as a way to stimulate the regional housing market. ...Read more
Property
The importance of statistical weighting in property data
Investors are being urged to deep dive into the data, with statistical weighting likely to show property nationally has fallen despite many regions still performing strongly, according to research. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
