Sydney property prices tipped to fall 10% in 2018
January 23, 2018 - Sydney
Sydney property prices are tipped to pull back by up to 10 per cent over the next 12 to 18 months, experts warn, after real estate markets ended the year with a whimper.
The harbour city is leading the country's property downturn, with prices falling 0.9 per cent in December. Prices were down 2.1 per cent for the quarter, well below price growth of more than 17 per cent in mid-2017, said the head of research at property research data group CoreLogic, Tim Lawless.
Sydney property prices are now 2.2 per cent below the market's peak in August 2017.
The median house price in the harbour city is now $1,058,306, with a median apartment value of $774,124.
"Sydney's housing market has become the most significant drag on the headline growth figures," Mr Lawless said, with capital cities down 0.4 per cent on average over December.
The lacklustre results were expected to continue over 2018, which was "likely to be significantly different" to the boom cycle of the past few years, Mr Lawless warned.
"We're likely to see lower to negative growth rates across previously strong markets, more cautious buyers, and ongoing regulator vigilance of credit standards and investor activity."
"There's going to be a negative growth rate, probably most similar to the 2000 to 2003 [time period] when prices fell by about 7 per cent," he said.
Other experts are predicting declines for Sydney of between 3 and 10 per cent. Sydney recorded 3.1 per cent growth in the year to December 31.
Mr Lawless expected the market's slide from "peak to trough" to take 12 to 18 months. "The market peaked in August for Sydney, so we've already seen four months of the slowdown."
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