The property market is heating up and set to sizzle according to research and property analyst experts with prices predicted to substantially rise if interest rates remain steady, the economy improves, and bank regulator APRA does not intervene with lending restrictions to slow down a rising housing market.
With the recent rapid price increases in Melbourne and Sydney, we could see rises from 11 to 17 per cent across these two capital cities, which would accelerate property price growth in other capital cities ranging from 1 to 4 per cent in Adelaide, 3 to 7 per cent in Perth and Brisbane, 5 to 9 per cent in Hobart and 3 to 8 per cent in Canberra.
Strong population growth rates, easier access to housing credit, new up and coming government incentives to make it easier for first home buyers to enter the market with a 5% deposit, continuing stability from local economies and increased spending are all strong indicators that will assist in driving prices up. However, a rise in unemployment for the first time in three-years, poor business confidence and global uncertainties are factors that can hold back property prices from reaching their expected peak of growth.
There are no certainties in knowing what the future holds, but property experts, research, data and trends would suggest that we are at the beginning of a new property cycle.