For months now, the news about Sydney’s property market has been positive and upbeat – that is, if you already own property in the region. For those who are yet to purchase property in the Harbour City, it’s getting less achievable and more affordable by the day.
That trend is set to continue, if we’re to believe new research, which predicts that Sydney prices will “continue to rise until the end of 2015, then start plateauing, with no anticipated sharp falls”.
The prediction comes from a paper under review for the Economic Record, which analysed monthly house price data going back to 1995.
Now, when reports like this are released, I’m not one to hang off their every word. These types of forecasts and predictions seem to come out every other week, and I’m sure if we were to collate and review them all, we’d find some interesting patterns.
But overall, I would never make an investing decision based on the immediate, short-term predictions of any research group, no matter how thoroughly they’ve prepared their report.
However, they do offer up some interesting broad trends, so I thought I’d share these latest forecasts for you to add to you knowledge bank.
Sydney is safe for now, according to the report. In fact, property prices in Sydney are expected to increase 6 per cent this year. But how do the other capital cities fare?
Melbourne prices are predicted to start falling, effective immediately, dropping 9.2 per cent in the year ahead.
Brisbane’s prices will fall 8.1 per cent.
Perth’s property prices will drop 5.2 per cent.
Values in Adelaide, Hobart and Canberra will slowly climb.
No prediction was released for Darwin.
What do you think about this research – does it match up with your expectations of how markets will perform in the year to come?
Til next time, happy investing!