An analyst has foreseen that Melbourne and Sydney are looking at facing a double-digit residential price growth as early as next year.
Louis Christopher, the Managing Director of SQM Research expressed that,
“We have low interest rates and loosening of credit restrictions. I’m increasingly confident that we’re going to see double-digit growth in Sydney and Melbourne, even without another rate cut in fact, I think we’re on track to see that happen by next year.”
For this current quarter SQM Research has indicated that we should expect a 2% growth in Sydney prices with another 4% rise in the December quarter.
SQM Research data has shown that asking prices in Sydney have already risen 5.6% with Melbourne also rising slightly. However, Tim Lawless Research Director at CoreLogic has made it apparent that he does not share that same view of Mr Christopher as he suggested that “We haven’t seen any evidence that housing values are about to embark on a rapid growth phase, at least from a macro perspective,”
Mr Lawless went on to mention that Melbourne and Sydney were clearly the primary states to respond to the recent incentive of lower mortgage rates, roomy credit policies and revitalised assurance following the election. He went on to say,
“More recently, it looks like the pace of capital gains is accelerating in Sydney and Melbourne,” and that “We are expecting to report a monthly increase in excess of 1 per cent across both cities when our August indices are finalised on Monday next week.”
This is a summary of the Sydney, Melbourne ‘set for double-digit growth’ published in Australian Financial Review | Property | August 28, 2019.