House prices in Brisbane, Perth, Adelaide and Sydney expect to have a growth spurt by 8pc says Nicola Powell - research and economics chief of Domain talks to Nila Sweeney of the afr.
Domain predicts Sydney house prices are poised to increase Ny $132k to an average of $1.76m - a climb by up to 8 per cent - with Perth Adelaide and Brisbane hitting the )1m mark!!
She suggests units will increase more than houses - as that is what most can now afford !
Why?
- strong population growth,
- increased borrowing capacity
- a supply shortage as a result of
- - a scarcity of land, weak building approvals and high construction costs
So what will slow down this increase?
“ Affordability constraints and serviceability limits” says Nicola
Melbourne is expected to be sluggish next year - but Nicola expects the spurt to come !!
Government and industry need to work together to find a solution to help those who cannot afford to buy a property to be able to !!
There are solutions to
- increase supply
- Help front line workers and those who can’t afford to enter the property marke
Some solutions
- Co-buying
- Co-investing
- Fractional ownership
- Government support - “help to buy”
- Opening immigration to construction workers - concessional interest rates?
- Fast train to outer areas ?
Exciting times ahead
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