The property market in Sydney is widely tipped to outperform the other states in the coming year 2015. It is on track to close the year 2014 with a robust property price growth of almost 13 per cent, easily the country’s best contender as it experienced heavy activities and pent-up demand this year.
Melbourne’s home values will close the year well with almost 8 per cent, with Brisbane and Adelaide trailing closely at around 5 per cent. Perth lags greatly with a barely touching 1.5 per cent growth over the year.
The property price growth for 2015 is determined by a couple of important attributes such as unemployment, the degree of curb on investor lending, consumer confidence and the economic growth as the country tries to re-energize the housing, tourism, construction and other sectors.
Sydney and Melbourne continue to reign as property hotspots, reflecting strong underlying housing demand and the insatiable appetite of investors. There is marginal growth projection for the rest of the capitals which should hover around the inflation rate.
While investors will be spurred on by the official cash rate which will remain unchanged at a 60-year low of 2.5 per cent, the moves by the Australian Prudential Regulation Authority (APRA) to limit banks to 10 per cent annual growth in investor lending – if implemented – could have a pronounced effect on property price growth.
Australia’s property market outlook for 2015 will remain resilient with relentless investor interest, low rates and steady local demand. Robust population growth and undersupply of housing is expected to level up the prices, with the exception of Perth which will trot along with slower growth as the market absorbs the extra surplus supply.
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