Add Category
Experts predict continued house price growth for the next six to 12 months before a downturn hits. Picture: Thinkstock.
DESPITE predictions of a property price slow down, a new survey of industry experts has tipped values to keep growing for the next six to 12 months.
The survey by the Australian Property Institute of valuers, financiers, analysts and fund managers, revealed just under half believed prices would continue to grow, particularly in Sydney and Melbourne for another six months.
PLENTY OF HOMES TO CHOOSE FROM
BUY IN THESE AREAS BEFORE THEY TAKE OFF
While about a third of respondents were more optimistic and believed prices would grow for a further 12 months.
API NSW president George Vallas said the survey was conducted in September and October, before banks moved independently to put up interest rates.
“(so) We can’t be sure if this would have changed the views of participants expressed in their survey responses,†Mr Vallas said.
He said experts in Sydney were evenly split on whether the Sydney market was in a bubble. Just more than half thought residential property was in or entering into a bubble in Melbourne, while in Brisbane only 24 per cent thought that was the case.
Most thought that Sydney and Melbourne property market was at the top of the cycle and within a year will have started the down swing with Melbourne expected to feel the affects more quickly.
They tipped the Brisbane market to hit its peak during 2016, and to drop off the following year.
All respondents believed low interest rates were a significant to very significant driver of Sydney residential property demand and prices. Many also thought prices were being driven up by foreign investment.