Melbourne dwelling price growth expected to return from 2020/21: BIS Oxford Economics
Melbourne house prices have followed the Sydney market downturn, with an estimated 15% drop from a December 2017 peak to June 2019.
Despite lower interest rates and the easing in credit market conditions, high levels of supply will keep a lid on prices in 2019/20, according to the BIS Oxford Economics Residential Property Prospects 2019 to 2022 report.
However, as dwelling completions fall away rapidly from 2020/21 price growth is expected to return, particularly given Melbourne’s strong population outlook.
A more constrained lending environment, particularly towards investors, is expected to contain total growth in the median house price to 7% in the three years to June 2022, the firm said.
With new supply more concentrated in the unit sector, the report said a more moderate aggregate rise of 4% is forecast for unit prices over the same period.
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