NAB is revising down its prediction for property prices in Australia's two biggest cities, saying the fall in values since the start of last year has exceeded its forecasts.
NAB has revised down its prediction for property prices in Australia's two biggest cities, saying the fall in values since the start of last year has exceeded its forecasts.Over the same time, prices in Melbourne are expected to fall 15 per cent"We now expect Sydney to decline by around 20 per cent from peak to trough, while Melbourne is expected to fall around 15 per cent," NAB Group chief economist Alan Oster said.
"Overall, we expect some further price declines in 2019, before levelling out in 2020," Mr Oster said, with"the weakness to be driven by ongoing declines in Sydney and Melbourne". Australia will see the world's biggest house price declines in 2019 and homeowners have to wait until 2020 to see any recovery, says a leading credit rating agency.
The analysts from the country's fourth-largest bank — who also tip the Reserve Bank of Australia to cut interest rates twice this year — forecast Sydney unit prices to fall by 7.2 per cent in 2019 and drop by 2.5 per cent in 2020 while saying Melbourne unit prices will slide 4.3 per cent in 2019 and dip 1 per cent in 2020.
"The key factors we see as having driven these declines include the early prudential tightening , some tightening in credit conditions , waning foreign investor demand as well as weaker price expectations themselves," Mr Oster said.expected home prices in the two big cities to continue falling"Overall, Sydney and Melbourne are likely to see a top to bottom fall of around 25 per cent spread out to 2020," Mr Oliver said.
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