Australian property prices to rise as lending rates increase
Australian property prices skyrocketed last year, and the trend is set to continue in 2017, experts say. It is going to be touch for first time buyers to get onto the property ladder.
Due to continuing shortage in housing and likely increase in interest rates by banks, first time house buyers have a struggle ahead to get into the market this year, experts told realestate.com.au.
Tim Lawless, head of research at CoreLogic, said lenders were becoming ‘more cautious’ as the gap between incomes and prices is widening.
Nerida Conisbee, chief economist at REA Group, had a similar assessment, saying ‘cheap money’ would be harder to come by.
Prospects were already gloomy for Australians hoping to enter the housing market. Property prices in capital cities surged by 10.9 per cent last year, according to CoreLogic data.
With Sydney’s median house price sitting at a daunting $852,000 (£692,964.64), CoreLogic data shows Sydney’s dwelling values have almost doubled, rising by 97.5 per cent since the global financial crisis.
Sydney’s median house price is more than double Brisbane’s $486,000 (£395,282.65) and easily trumps Melbourne’s $641,000 (£521,350.16), according to the data.