Boom to fade in coming year
After a record-breaking performance over the last 12 months, Sydney price growth is set to ease over the next financial year, according to a new forecast.
Data released by Domain Group shows the Sydney housing market saw growth of 16.3 per cent over 2013-2014.
However, this growth is predicted to drop to between five and seven per cent in the 2014-2015 period.
“Although this is well below the previous year’s boom time results, Sydney will remain a leading capital city performer,” Domain Group senior economist Andrew Wilson said.
The strongest suburbs in the city are expected to be the west, north west, south west and Canterbury regions, where growth is tipped to hit eight per cent in the next financial year.
“Affordability constraints will push buyers back to less expensive outer suburban areas with Sydney’s outer regions set to be the best performers over the next year,” Dr Wilson said.
On the other hand, the lower north, central coast, city and eastern suburbs are tipped for growth of just five per cent, while the Blue Mountains will hit just four per cent.
Dr Wilson said the spring selling season would likely to boost prices.
“Buyer and seller confidence remains high with the prospect of another robust spring selling season for the Sydney market,” he said.
However, as property prices climb higher, more buyers would be pushed out of the market.
“Price growth, however, will continue to moderate from the peak levels of late last year as affordability barriers from low incomes growth impact the market,” Dr Wilson said.