Property Forecast 2016 – 2017
Australian Property Forecast.
Housing Markets Continue to Drift
A spring revival in house price growth in Australia’s housing markets has so far failed to emerge according to latest Australian Property Monitors data. The national median price for houses fell by 1.6 percent over the three months ending October 2011. National House prices have now fallen by 4.2 percent over the year ending October.
The unit market continues to outperform the market for houses, with the national median price falling by 1.0 percent over the quarter. National unit prices were down by 0.9 percent over the year
Although Sydney and Melbourne both recorded falls in median house prices over the October quarter, they remain the best performers of all the mainland capitals. Sydney house prices fell by 1.1 percent and Melbourne was down by 1.2 percent. House prices have now fallen by 2.3 percent in Sydney and 4.3 percent in Melbourne over the year ending October.
Brisbane and Perth housing markets remain weak with median house prices in Brisbane down by 3.1 percent over the quarter and Perth prices down by 2.2 percent. Over the past year median house prices have fallen by 6.9 percent in Brisbane and are down by 5.7 percent in Perth.
Australia’s economic prospects remain positive as indicated by the latest OECD Economic Report forecasting above trend growth of 4 percent next year. Despite continued bright economic prospects courtesy of the resources boom, buyer confidence remains fragile and is particularly sensitive to continued mixed international economic news and its negative impact on local equity and finance markets.
As a consequence expect prices growth to remain subdued in most capital city housing markets over the remainder of 2011.