Sydney and Melbourne are Expected to Grow Further
Propell National Valuers released the Residential Market Report for the month of February, and made a prediction that the housing markets of both Sydney and Melbourne will keep growing with a rate of 10% and 7% respectively.
“The continued fall in interest rates would reduce the cost of entry into the housing market”, said Linda Phillips
She further added ‘’At the margin, there are many buyers that remain price sensitive, and by reducing the cost of repayments it enables more people to come into the market, or to buy a slightly more expensive property”.
The Reserve Bank already made a rate cut to 2.25%, and another cut to 2% is expected for the next month or two as observed by many experts.
At this Phillips adds, “As a result, this will continue to support or increase prices”. Also the weaker markets like Perth and Darwin were likely to see benefits. Potential growth in the housing market was also strongly linked to interest from foreign investors”.
She further added, “Compared to prices in other international cities, Australian prices still look cheap. Australia is regarded as a stable developed country with good long-term investment prospects”.
News Source: http://www.yourmortgage.com.au/article/sydney-and-melbourne-set-for-further-growth-197442.aspx