An independent property advisory firm in Australia is predicting that property prices will rise by between 15 and 20 per cent in Sydney next year.
According to SQM Research, property prices in Australia’s largest city will boom in 2014, following a slight downturn in the past year. Low interest rates and improved buyer sentiment have been given as the main reasons behind the prediction.
In total, SQM says it expects to see the average house price across all eight state and territory capital cities rise by between 7 per cent and 11 per cent next year, up from the expected 2013 average of between 6 per cent and 9 per cent.
“The housing recovery that commenced in the third quarter of 2012 for most capital cities is now about to enter into a more accelerated phase from what has generally been modest price rises to date,” said Louis Christopher, SQM’s Managing Director.
The company predicts that prices in Perth, Brisbane and Melbourne will rise by between 4 per cent and 8 per cent next year, while price growth in Darwin, Adelaide and Hobart will be closer to 3 or 6 per cent.
Canberra is the only Australia capital city in which SQM expects house prices to fall in 2014, with the company predicting declines of between 1 per cent and 4 per cent – although this would still be an improvement on the 3 to 6 per cent price decrease expected this year.