According to the latest BIS Shrapnel report Residential Prospects 2015-2018, house prices will start to fall in 2016 – 2017, as affordability declines and coincides with the threat of rising interest rates.
They suggest the three year outlook for Sydney does not justify the current level of frenzied spending and that the median Sydney house price by June 2018, will only be 2% higher than it is today, still under the $1 million mark.
The Financial Review reports that AMP Capital chief economist, Shane Oliver is in agreeance: “The real risk for property is in 2017 when the Reserve Bank starts raising rates and then you will see prices come off 5 –10%, particularly in Sydney”.
However, Brisbane apartment prices are set to be higher in June 2018 than they are today. Brisbane is the only capital city flagged in the BIS Shrapnel report, to experience apartment price rises in the next three year period. In fact, a median house price growth of 7% for the next year and 13% over the forecast 3 year period.
Improvement in affordability in Brisbane will spur stronger growth, whereas Sydney and Melbourne will decrease due to the worsening affordability.
At Calla Property we understand that it is necessary to look into more detail than just a ‘city’. As with any city, Brisbane has particular regions that will grow and develop and others that will not. It is important to invest in the right type of property in the right location.
We are able to help minimise the risk of property investment, as we conduct thorough due diligence, not only in the National property market and its cycles, but in every aspect of what makes an investment property the ideal investment for you.
If you would like to grow your wealth and secure a better future and lifestyle for you and your family now is the time to act. Call us today at Calla Property and we can help you define your financial goals and clarify your wealth creation strategy. 02 9016 2852.