Sydney and Melbourne are likely to continue to lead the growth in the property market for 2017, although the forecast for housing markets remains mixed for 2017.
It is likely that other capitals will remain steady, with price growth generally constrained by low-income economies.
Lower interest rates in 2017 are likely to continue to bolster housing markets, with an increasingly underperforming national economy almost certain to require further stimulus from the Reserve Bank.
House price growth, although remaining positive in most capitals through 2017, will likely track in a narrow range of up to 5% annually for the top performers.
The unit market in Melbourne will continue to be influenced by significant levels of new apartments, acting to push supply ahead of demand.
Record new apartment supply in the Melbourne CBD will continue to outstrip demand, with downward pressure on prices to continue in that submarket.
The impact on local prices will vary, and we could see a lagging effect on the increase in apartment prices.
Strong demand and lack of supply for suburban units, however, will offset the weaker CBD market. This means that overall Melbourne unit prices growth is likely to remain positive over the year.
If you’ve ever considered selling up and moving to the CBD, 2017 may be your time.
Obviously, it is hard to predict what will happen in the future, although the strength of the Melbourne and Sydney housing markets looks to continue into 2017, which means it should be another great year to purchase.
If you would like to discuss your personal situation to see what might be the best property options for you this year, please contact one of our Partners Lending specialists today.