Sydney property prices to flatten
Restrictions on loans to investors mean Sydney housing has hit its peak.
Insurer QBE has claimed Sydney house prices are set to flatline over the next three years, the Sydney Morning Herald has reported. In its annual housing outlook, QBE said median house prices are likely to remain flat while apartment prices could fall by 6.8% by June of 2019.
“Prices are forecast to soften through the three years to 2019, which is likely to be positive for housing affordability,” QBE LMI chief executive Phil White said.
White suggested the first home buyers could benefit from the stagnation of house prices.
According to the SMH, QBE tightened standards on property investors will lead to the softening in prices. The insurer said investor participation was beginning to decline. Investors accounted for 44% of residential loans in the 12 months ending June 2016, while they accounted for 51% of the market in the same period the previous year.
QBE has also forecast a slowdown for the Melbourne market, with median house prices predicted to fall by 0.6% by June 2019, and median apartment prices to fall by 9%.
- How will proposed “simpler credit” rules affect Australian borrowers?
- Borrowers are back: homebuyer lending rises 10% in July
- Australian borrowers could save up to $60,000 by refinancing right now
- Athena’s new home loan rates get lower as you pay your mortgage off
- House prices continue falling (slowly) across Australia