BIS Shrapnel tips Sydney property growth to continue through to 2017
ALL the talk of property booms and bubbles means little to one economic forecaster, which tips Sydney’s market to stay positive for years to come.
An undersupply of houses and units should continue to drive Sydney property prices upwards over the next two years, but growth will likely slow down by 2017.
BIS Shrapnel’s Residential Property Prospects 2014-2017 report forecasts total growth in Sydney property prices to hit 14 per cent over the next two years, following a 15 per cent increase in house values over 2013.
Much of this growth will come on the back of a buying market which continues to have a largely positive view of market conditions.
Sentiment remains particularly healthy among investors, who the report tips to carry on purchasing property in high numbers, pushing up prices in the process.
The speed of growth is likely to change when a wave of newly constructed apartments hits the market.
A high level of new apartment developments has already been started across Sydney, but many have yet to be completed. By the time the majority are listed for sale, the low interest rate environment will likely have changed and property prices will have become less affordable, dampening demand.
This combination of increased supply, decreased demand should slow growth in property prices, according to BIS Shrapnel, which predicts total Sydney property price growth to be at 10 per cent over the next three years.