This would mean the average apartment price in the NSW capital would drop by $59,906.
Melbourne is expected to be the next worse hit, with unit prices falling by 7.13 per cent or $38,163.
Brisbane apartment prices are predicted to decrease by 4.42 per cent ($17,998), while Perth units by 3.42 ($12,983) per cent.
The figures came from finder.com.au’s RBA cash rate survey, which asked experts and economists how much they expected property values to fall by the end of next year.
Graham Cooke, insights manager at finder.com.au, says the excess of apartments in capital cities will be a key factor contributing to the fall in prices.
“Those in the market for an apartment face a much greater risk of losing equity compared to those buying a house, due to an oversupply of units in capital cities,” he said.
“Property on the outskirts of cities will experience a much more significant drop than those in the CBD, as demand is generally not as strong in these areas.”
Mr Cooke said this should prove a warning to ‘rentvesters’ – those renting out an apartment they’ve purchased and simultaneously renting themselves – as historically property in low-priced areas is hit the hardest.
He said those in the market should be optimistic and utilise the advantage of the soon-to-be buyer’s market.
“If you’re in the market to buy now, look for value before you sign on the dotted line. It’s overwhelmingly a buyer’s market so use your bargaining power and don’t take the price guide at face value,” Mr Cooke said.
“As well as falling property prices, and therefore a smaller mortgage, first home buyers are spoilt for choice when it comes to home loans on offer, with historically low variable and fixed rates, alike, in market. Today, your rate should have a ‘3’ in front of it.”
His positive sentiment was echoed in the results from finder.com.au’s Economic Sentiment Tracker, which showed optimism towards housing affordability has continued to remain at a year-long high into November, up from its low point in July (46 per cent from 23 per cent in July).
The experts predicted housing prices to suffer similar drops to apartments, with Sydney houses expected to fall by $53,620, Melbourne’s by $33,350, Brisbane’s by $7,200 and Perth’s by $10,417.
