5 cities to enjoy stronger capital growth in 2015
Despite a weaker economic outlook, five of Australia's capital city property markets are forecast to outperform their 2014 growth figures.
Domain Group predicts Brisbane will post 6.0 per cent growth in 2015, ahead of the 5.9 per cent rise it experienced in 2014.
Hobart prices are also predicted to climb by 4.0 per cent, after rising just 2.1 per cent last year.
In addition, Canberra is forecast to grow 2.0 per cent – up from 0.9 per cent in 2014 – and Darwin is expected to turn the corner from negative growth of 2.5 per cent to a positive 2.0 per cent.
Despite predictions of continued growth, the other capital cities aren't expected to perform as strongly as they did in 2014.
Sydney's median house price is forecast to rise 8.0 per cent in 2015 after a 14.0 per cent increase last year, according to Domain's figures.
Melbourne's growth will also decline, the forecast said, from 4.1 per cent in 2014 to 4.0 per cent and Adelaide is also expected to drop, from 4.6 per cent to 4.0 per cent.
Domain Group senior economist Andrew Wilson said capital city housing markets have generally had a good start to 2015, despite the underperforming economies in most areas.
“The February cut in interest rates, although not providing significant improvement to affordability, has nonetheless impacted buyer confidence and reinforced underlying market dynamics,” Dr Wilson said.
He said record low interest rates in 2015 were likely to be offset by weakening economic activity, particularly rising unemployment.
“Sub-market activity will remain mixed, with growth prospects in the mid- to higher-priced brackets continuing to be the strongest performers of most local markets overall," he said.
“The prestige market, which has been relatively subdued over recent years, should benefit from a rising stock market to finally regain its previous peak levels of 2007.”