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