8pc growth predicted for two cities
Macquarie Bank has predicted eight per cent house price growth in two Australian cities over 2013.
Sydney and Perth have both been tipped to see eight per cent growth this year, Macquarie Private Wealth's Noel Yeates revealed at an LJ Hooker Mosman investment seminar last week.
Data indicates these numbers will likely be followed by eight per cent again in 2014 for Perth, and seven per cent in 2014 for Sydney.
Meanwhile, Melbourne is expected to see five per cent growth, while Brisbane’s market could be picking up with an expected three per cent growth – an improvement on last year’s one per cent drop.
Mr Yeates said the high numbers in Sydney and Perth were a result of supply and demand factors, particularly influenced by both interstate and overseas migration.
“Sydney has a higher inflow of migrants from overseas, but also loses a number of people through intra-state migration, primarily to Queensland and Western Australia,” he said.
“So the net population gain in Sydney is quite great and that’s one factor on the demand side. On the supply side, for the last four years we’ve really seen an underbuild of standalone housing, and also housing in multi-dwelling developments. So we’ve got an increase in demand and a shortage of supply, and that’s what we think is going to be a driver of housing prices.”
Mr Yeates highlighted strong migration to Western Australia – concentrated in Perth – from both interstate and overseas migrants as a driver for Perth’s increasing house price growth.