A new report reveals that some of Australia’s largest cities are expecting to record double-digit property growth over the next three years.
BIS Shrapnel’s latest Australian Housing Outlook, released yesterday, revealed that property prices in Sydney are expected to rise by 19 per cent by June 2016, while prices in Perth and Brisbane are expected to increase by 17 per cent and 16 per cent respectively in the same period.
Ongoing under-supply, along with strong demand driven by population growth and high overseas immigration were given as the main factors behind the expected price increases.
However, the company expected price growth to be far more muted across Australia’s other capital cities, forecasting rises of just 6 per cent in Melbourne and Adelaide, 4 per cent in Hobart and 3 per cent in Canberra.
“These cities are estimated to have an underlying excess of housing stock and the states are also forecast to continue to face economic headwinds in the next few years,” said Robert Mellor, the managing director of BIS Shrapnel.
He added that Melbourne still has a “lot of supply of inner city apartments in the CBD, Docklands and Southbank coming onto the market over the next 18 months.”
Article published 15th October 2013