The housing market in Australia is set to lose some steam in 2016, according to a report released by the Australian property search firm Domain Group, on Monday. Property prices in major cities are expected to slow dramatically as investors continued their exodus from the market, the study predicts.
Double-digit growth in the housing market as large as Sydney and Melbourne in the past two years will not be repeated, according to the group's latest State of the Market Report.
House prices rose 6.8% in eight major cities in Australia in 2014 (3.34% adjusted for inflation), after an increase of 9.48% over 2013 (6:47% adjusted for inflation), according to figures from the Australian Bureau of Statistics (ABS). House prices increased by 1.9% quarter-on-quarter in Q4 2014.
Property prices in Sydney jumped 16 percent in 2015, but the market is expected to slow to growth of around 4 percent next year, while Melbourne - The property market is the second strongest Australia - will enter the growth of the price of a single digit from 5 percent in 2016, compared with 12 percent in Queensland's capital Brisbane 2015 will also witness a slight decline in the growth rates of 6 percent in 2015 to 4 percent next year, according to research Domain Group.
Real estate market watchers Australia SQM Research has predicted capital average residential price rose between 3 and 8 per cent in 2016, while ANZ Bank gave a more modest outlook of 1.4 to 3.2 percent growth in Australia, according to a report by the Australian Financial Review ,
Moody's Investors Service said in a report last month that the steep housing prices in Sydney forcing households to spend an average of about 40 per cent of their income on mortgage payments in October, up more than a third compared with the same period last year.
"Housing affordability in Australia has deteriorated significantly over 12 months as the current low mortgage interest rates failed to offset the impact of rising house prices over the past year," the ratings agency said.
House prices continue to rise in Australia To Slump In 2016 As Investors Continue Exodus From Market
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