Developer bucks trend by predicting house price growth
The chief executive of a real estate development company has predicted that house prices will continue to rise for at least the next three years.
Stockland CEO Mark Steinert has forecast that house price growth will moderate, but that property will continue to appreciate by 3-4% per year, the Australian Financial Review has reported.
The prediction runs counter to much of the prevailing sentiment regarding the housing market. The Reserve Bank noted in its August minutes that the housing market appeared to be cooling, and forecaster BIS Shrapnel has predicted house price falls “across the board” by 2019.
Steiner, however, has claimed Sydney and Melbourne “are in the midst of a golden decade” for housing growth.
Steiner put a positive spin on slowing house price growth and dwelling commencements, the AFR reported.
“They are all good things if you want to avoid a bust,” he said.
Steinert dismissed the idea that the housing market could suffer a decline.
“It would take a lot of overbuilding, or a collapse in the economy, or a rise in interest rates, to turn this market. Normally they all happen together, but I cannot see that happening in the next five years,” Steinert said.