Sydney house prices will drop 12% from peak: Domain
Sydney house prices will remain close to unchanged in the year to December 2019 after falling by about 8% in 2018, according to the latest Domain forecasts.
Domain predicts house prices will grow modestly in 2020.
They believe that house prices will fall by about 12% from their peak of almost $1.2 million in June 2017 to a low point of just above $1 million in mid-2019.
Source: Domain
Sydney unit prices are expected to be more resilient than house prices.
Domain Economist Trent Wiltshire said: "Unit prices are expected to fall by about 3% over the year to December 2018, but then prices are expected to grow modestly over the next two years at about 3-5%.
"Sydney unit prices are predicted to fall by 6% from their peak of $769,000 in June 2017 to their lowest point of about $720,000.
"At this low point, Sydney unit prices will be back at their late-2016 level.
"The NSW government’s stamp duty concessions are also likely to support unit price growth."
Source: Domain
However, one risk to Sydney unit prices is whether the large pipeline of new unit construction is absorbed.
Given projected strong population growth, Domain is of the opinion that this will not result in city-wide price falls, although some areas with a particularly large amount of new construction may see prices remain weak.
"Tighter lending conditions have weighed heavily on Sydney property prices, particularly for more expensive properties, but we think this is likely to have played out by mid-2019," Wiltshire said.
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