Analysts from SQM Research predicts Melbourne and Sydney home prices will rise to double digits in 2020!
Managing Director of SQM Research, Louis Christopher, proposes many future scenarios. After considering many factors, he suggests this ideal scenario. In this ideal scenario, Melbourne prices would rise 12 to 17 per cent and Sydney prices would rise 11 to 16 per cent.
The factors which contribute to this ideal scenario:
- steady interest rates (along with an interest rate cut from Reserve Bank);
- improvements in the economy;
- and no interventions for lending from bank regulator, Australian Prudential Regulatory Authority (APRA).
Additionally, home prices can further boom with the help of strong population growth rates, easier credit lending policies and a strong economy.
Melbourne and Sydney won’t be the only cities profiting from this ideal scenario. Although the increase in not as large, other capital cities are predicted to increase somewhere between 1 to 9 per cent.
Read about it in detail here.