Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Property boom to end in 12 months

QBE’s annual Australian Housing Outlook has forecast price growth to begin cooling from 2015/2016.

Released yesterday, the 2014 – 2017 report researched and prepared by BIS Shrapnel anticipates housing stock deficiency will remain a key indicator of growth in 2014/2015, especially in Brisbane (7.4 per cent) and Sydney (7.2 per cent).

However, the report found that a combination of further price growth, an easing of the dwelling deficiency and a forecast tightening in interest rate policy beyond the next 12 months, is expected to eventually weigh on the residential market and cause price growth to slow across most cities from 2015/2016.

Advertisement
Advertisement

“In its 13th year the Australian Housing Outlook has again analysed the drivers and influencers within the housing market to forecast trends for the next three years and deliver key insights into the future of the mortgage industry,” QBE LMI chief executive Jenny Boddington said.

“For the first time, in addition to providing an overview and outlook of the residential markets of each of Australia’s state and territory capital cities, this year’s report also looks at selected regional centres in New South Wales, Queensland and Victoria,” Ms Boddington said.

“Expanding the coverage of the Housing Outlook has allowed us to be much more granular than in the past, and for the report to forecast housing prices in key areas such as Newcastle, Geelong and the Gold Coast,” she said.

The report suggests that while while new dwelling commencements are currently exceeding average underlying demand in most states, new supply will take some time to address tight vacancy rates and change the pattern of price rises.

“Most interestingly this year is that the report has forecast a dampening of growth before prices begin to stagnate as early as next year,” Ms Boddington said.

Median house price growth over the next three years is forecast to be strongest in Brisbane (17 per cent), with further growth also expected in Sydney (9 per cent), Melbourne (5 per cent), Adelaide (6 per cent) and Hobart (5 per cent).

However these markets are forecast to experience either a decline in their dwelling deficiency or a rising oversupply through to 2016/2017, according to the report.

The weakest price performance is forecast for Perth, Canberra and Darwin.

 

Property boom to end in 12 months
mortgagebusiness

Latest News

The federal government has committed an additional $130 billion in support to protect jobs threatened by the economic fallout from the cor...

New government-led interventions in the housing market in response to the coronavirus outbreak are set to further hinder transaction activit...

The number of owners withdrawing their property from auction soared to 40 per cent last week, following the introduction of a ban on auction...

FROM THE WEB
podcast

LATEST PODCAST: Further relief for SMEs and borrowers

Do you think Australia will move to quantitative easing this year?

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of Mortgage Business.

Read more

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.