Stark forecasts for home prices across the country are tipping mammoth growth in the next three years, according to a leading economics firm.
House prices in Sydney are predicted to reach an average of nearly $2 million by 2027, thanks to anticipated rate cuts and a supply shortage, research by Oxford Economics Australia predicts.
And it’s not the only capital city expected to post strong price growth, with Melbourne set to see growth in the order of 20 per cent and Perth tipped to be hammered by a 30 per cent increase.
The research, published today in the Australian Financial Review, paints a bleak future of deteriorating housing affordability.
Maree Kilroy, a senior economist at Oxford Economics, told the newspaper surging demand would continue to far outstrip the available supply of homes.
“You have a fundamentally undersupplied market and with net overseas migration running at half a million people, a growing participation by foreign buyers, downsizers and cash buyers, demand has outweighed the drag interest rates would typically have,” Ms Kilroy told the AFR.
To put the growth forecasts into perspective, look at where prices are now and where they’re expected to be by 2027.
Oxford Economics Australia is also ...
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