Sydney is expected to experience the end of the market upswing. It is now being constrained by low rental yields and buy and sell affordability. However, sales demand still exceeds resale supply. Its new housing supply is still relatively tight as well.
According to Property Update, the forecast is a 5 to 7.5% increase in house values and rent in the next year. The recent rate of growth is unsustainable and Property Update anticipates that attached dwelling values and rents could increase by 2.5 to 5% in the next year.
Meanwhile, Melbourne is still in a market upswing, though constrained by poor rental yields and low affordability. Local job growth and strong population keep buyer demands above resale supply while new housing supply remains tight as well.
Property Update forecasts a 7.5 to 10% increase in house values while attached dwelling could increase by 2.5 to 5%. Weekly house rents could increase by 2.5 to 5% whereas attached dwelling rents could rise by 0 to 2.5% in the next year.
Brisbane is mildly recovering in sales but not in price or rental growth. There could be improvement in affordability, migration and investor interest but local job growth and new apartment overhang are a bit of a slump. Property Update forecasts a 5 to 7.5% increase in house values with attached dwelling values likely falling by -5 to -2.5%. There could be little rental growth and a drop in attached dwelling rents in the next year.
Residential markets are in different places as some improve while some decline. Demand, supply and external factors determine the strength, position and outlook of each market. Most capitals will likely experience a continued increase in dwelling prices in the next year while rental could be more inconsistent.
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