RBA Predicts More Growth for Sydney and Melbourne
The RBA has forecast further growth for property growth and prices in Sydney and Melbourne. Apparently Australia’s two major cities have not fully taken advantage of the super-low rates. The RBA revealed this in their quarterly statement.
It revealed that: “Supply constraints, particularly in Sydney, may limit the extent to which new dwelling investment can satisfy growing demand, which raises the possibility that housing prices will grow more quickly than forecast. Also, housing prices outside Sydney and Melbourne are little changed over the past year or so and may not yet have responded fully to the very low levels of interest rates.”
According to CoreLogic RP Data the annual house price growth has increased by 19.8 percent for July in Sydney and 12.3 percent for Melbourne. Furthermore in 2016 NAB Group Economics predicted that Melbourne would grow by 3.5 percent and 5.0 percent in Sydney.
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By Rebecca Boss