According QBE Insurance Group Ltd.’s annual housing outlook, Sydney’s apartment prices will fall by as much as 6.8% by June 2019, with tighter investor lending and housing oversupply taking their toll on Sydney property prices. In turn, the slow rental and price growth will dampen investor appetite for property.
“Prices are forecast to soften through the three years to 2019, which is likely to be positive for housing affordability,” said QBE Lenders’ Mortgage Insurance CEO Phil White.
“It’s expected owner-occupiers, including first home buyers, will be stepping in to pick some of this opportunity in the market.”
Along with Sydney, the Melbourne property market is also expected to go on a downward spiral, with house and unit prices falling by 0.6% and 9%, respectively, by June 2019. Perth, which saw a huge decline in mining investment, is forecast to be 10% below its 2014 median house price peak by 2019.
Only Brisbane is seen bucking the trend, with QBE forecasting a 6.5% surge in prices due to lack of new supply.
