Oliver's Insights: Australian house prices on the upswing again – seven things to bear in mind about the Australian property market

Dr Shane Oliver, Head of Investment Strategy and Chief Economist takes a look at the upswing now underway in the Australian residential property market.

The key points are as follows:

  • Expect average Australian home prices to rise 5-10% this year and next as ultra-low interest rates and economic recovery feed through.

  • However, the outlook is divergent – with houses expected to outperform units and smaller cities and regional property expected to play catch up.

  • The drivers of the long-term property bull market that’s been underway since the mid 1990s may start to wane over the next 3-5 years as the long term decline in interest rates bottoms out and as the chronic undersupply of property gives way to oversupply.

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If you would like to discuss any of the issues raised by Dr Oliver, please call on 1300 882 166.