According to a recent KPMG study, residential property prices in Sydney and Melbourne are expected to reach their lowest level by 2021.
The study predicted that the total decline in Sydney prices for the entire slowdown, initiated in 2018, would be 12.9%. The decline in Melbourne, meanwhile, should be less than that of Sydney, slips from top to bottom being 4.5%.
Price declines in Sydney would be greater than Melbourne's because of declining investor interest, which will have an increased impact on New South Wales (NSW), says L & # 39; study. In 2016, investors were responsible for nearly 60% of NSW's real estate purchases.
Looking at the housing forecast, KPMG predicted that real median prices in Sydney are expected to fall by an average of 4.3 percent in 2019, then decline by 1.3 percent in 2020, and then to record record growth. about 3.5% in 2021.
Median real estate prices in Melbourne, on the other hand, are expected to fall by 2% this year, then reverse positive growth of around 3% and close to 5% for 2020 and 2021, respectively.
KPMG chief economist, Brendan Rynne, said that tighter lending policies had caused price declines so far, but that these strict credit standards could begin to s & # 39; 39; mitigate in the coming months, according to a report published by news.com.au.
KPMG also predicted that the Labor Party's proposed negative gearing reforms would not affect the availability of rental housing for a long time, should the party win the election.
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