Property professionals are positive there will be even more house price growth in New South Wales this year, a survey of more than 1800 industry professionals reveals. However, economic experts warn that continuing strong growth in 2017 could spell trouble for the Sydney housing market.
The 2017 ANZ/Property Council Survey revealed that property professionals, ranging from developers to real estate agents, were more positive now than they were a year ago about the likelihood of house price growth in the near future.
The strongest expectations of growth were concentrated in New South Wales, followed by the Australian Capital Territory, South Australia, and Victoria.
In New South Wales, the index has progressively risen over the past four surveys, though it declined in March 2016 when Sydney’s median house price dipped below $1 million.
Jane Fitzgerald, executive director of Property Council NSW, said the state was in a great position to start 2017. “NSW had a strong 2016 and the next 12 months are looking positive with high expectations for growth, investment and hiring across the state,” she recently told the Domain Group.
However, continued price growth is reigniting fears that a correction is imminent.
SQM Research’s Housing Boom and Bust Report 2017 warned that Sydney’s anticipated price growth could leave the housing market “dangerously overvalued…paving the way for a possible correction in 2018”.
BIS Shrapnel also predicts future price declines in the Sydney housing market. “We won’t get price growth forever…we still think things will start to ease back again in 2018,” Angie Zigomanis, BIS Shrapnel’s senior manager of residential property, warned.
M. Mata, “Property professionals anticipate more house price growth in NSW this year”, Your Investment Property, 2017. [Online]. Available: http://www.yourinvestmentpropertymag.com.au/news/property-professionals-anticipate-more-house-price-growth-in-nsw-this-year-229536.aspx. [Accessed: 14- Jan- 2017].