Sydney property prices to flatten

Adam Smith 13 October 2016

house graph stock marketRestrictions 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%.

Latest home loans headlines

Image: Shutterstock

Ask a Question

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the privacy policy, receive follow up emails related to and to create a user account where further replies to your questions will be sent.

Ask a question