2018: The year ahead for Sydney Property
The Sydney property market is set to shift in favour of buyers in 2018 as house price growth adopts a more moderate pace across the city following a sustained period of double-digit rises.
That’s the view of several industry experts who predict Sydney’s record-breaking house price growth will ease over the next 12 months, improving opportunities for house hunters.
SQM Research, for instance, said it was likely that the rate of property price increases in Sydney would slow early in 2018, before recovering later in the year as lending to investors increased.
“Our Sydney forecast for this year of price growth of 11 per cent to 16 per cent will not be reached and a more moderate 6 per cent to 8 per cent increase in prices can be anticipated,” SQM Research director Louis Christopher said recently.
In its 2018 forecast, NAB also predicted slower price growth in Sydney in line with a nationwide property market slowdown across many capital cities.
Indeed, NAB recently revised down its national house price forecast for next year from an increase of 4.3 per cent to 3.4 per cent, citing more moderate market conditions.
NAB’s chief economist Alan Oster, pointed to rising supply of apartments, tighter credit conditions and lifting interest rates in the second half of 2018 as contributors.
“Relatively low mortgage rates, a favourable housing supply-demand balance and strong population growth should continue to provide support for prices going forward,” he added.
Although moderated, home prices in many Sydney suburbs are still tipped to rise next year including in the city’s southwest, according to the latest Price Predictor Report by Hotspotting.com.au.
Prices in Elderslie, Minto, Oran Park and Spring Farm are expected to increase, while Belmore, Bexley, Darlinghurst and Bondi are also in line for further growth, the research says.
It points to surging demand for the bullish forecast in those suburbs and especially in the southwest where the Badgerys Creek Airport plan is likely to buoy buyer interest.