According to the latest National Australian Bank (NAB) survey, prices in most state capitals are expected to fall over the next two years, with housing sentiment deteriorating amid the COVID-19 pandemic.
According to real estate professionals interviewed by NAB in Q2 2020, house prices should fall by 2% in the following 12 months and by 0.1% the following year.
Among the capitals, Victoria is expected to experience the largest decline with 3% in the next year and 1.1% the following year.
A CoreLogic report showed that the state capital of Victoria is currently leading the decline amid the COVID-19 epidemic, signaling price drops for the third consecutive month in June.
Eliza Owen, responsible for residential research at CoreLogic, said that markets with higher incomes, more indebted households and more active investors are more exposed to changes in economic conditions.
"High levels of investment are also evident in the Melbourne market, which can contribute to volatility, although this is also present in Sydney," she said.
Read also: Unit rents show the largest decline in 15 years
Alan Oster, chief economist at NAB, said prices could drop by about 10% to 15% from peak to trough.
"While prices have held up slightly better than expected, they have now fallen for two consecutive months in capitals, and we expect this to continue for some time," he said.
Among the capitals, Melbourne is expected to post the largest annual price decline this year at 7.3%, followed by Sydney by 4.7%. Next year, prices in Melbourne are expected to drop another 6.5%.
On average, capitals are expected to record record declines of 4.6% this year and 4.3% next year, according to NAB.
"As the initial restrictions on COVID-19 on housing activity have eased, the economy has contracted very sharply, and even if we seem to have bottomed out "Activity will take time for the recovery to take place," says Oster.
Top suburbs:
st marys
,
new farm
,
dulwich hill
,
coolbellup
,
mt gravatt
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in a property, it is important to make sure that you not only have the lowest available rate you can get, but
Just fill in a few details here below and we will then arrange a local mortgage broker to contact you and determine the features or types of loans that are right for you. Needs. We will even help you with the paperwork. In addition, an appointment is free.
We value your privacy and treat all of your information seriously – you can check
our privacy policy here
