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 House Prices Set To Jump by Nicolette Casella
Daily Telegraph 3 July 2003
House prices are set to jump by up to 36% over the next three years despite a new study predicting a slowdown in the market this year. Industry analyst BIS Shrapnel predicts the strongest growth will be in Brisbane and in Sydney, already the most expensive capital city for homes.
Sydney prices are tipped to increase by 24 %, taking the city's median house price to $578,000 in 2006.
BIS Shrapnel's Residential Property prospects 2003-3006 study predicts a slowing, not a halt, to the price spirals of recent years. It forecasts median price increases of between 9 and 36% in Australia's capital cities over the next 3 years.
And that is without adjusting for inflation, which BIS Shrapnel said would increase prices by around 10% over the same period. "In real terms, prices are expected to decline marginally in Melbourne and Adelaide", it said. Prospective home buyers face a brief reprieve this financial year, with BIS Shrapnel predicting the market will pause in 2003/04
It said first home buyer demand had substantially weakened, and the presence of investors- who accounted for 37% of total residential borrowings the year to march '03 - would wane as vacancy rates rose.
While Sydney's median house price is expected to rise to $578,000 IN 2006, BIS Shrapnel predicts it will fall by up to 10% the following year. Sydney house prices have already jumped 20% over the past year.
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