NAB warns about property price growth
House price growth could halve in the year ahead, NAB has warned.
According to the Australian Financial Review, a new NAB report issued to mortgage brokers has predicted that house price growth will slow by more than half in 2018. The bank projected house prices across the country to grow by about 4.3% next year, while it forecasted that apartment values would fall by 0.4%.
But while Sydney and Melbourne have seen the growth of property prices move backwards in recent months, NAB has actually projected resilience for the markets, revising the growth forecasts for Sydney and Melbourne and now saying that prices will begin to grow again for the remainder of 2017.
The bank increased its growth forecast for Sydney for the end of 2017 from 4.5% to 10.5%, while it increased its growth forecast for Melbourne from 5.6% to 10.8%, the AFR reported.
NAB did warn, though, that “risks still linger” in the Sydney market. It also issued a warning about the Melbourne unit market.
“Melbourne is performing well, although over-supply concerns drive a wedge between house and unit prices. This divergence is expected to continue,” the NAB report said.