Sydney – Pro property analysts in Sydney have predicted that the property prices in the capital will remain collapsed up to June and would rise by the end of 2019. The predictions came after National Coalition’s surprise victory in the 2019 elections. National Coalition victory is provoked by Reserve Bank’s indication on interest rate drop by June of this year.
After the 2017 peaks, the property market in Sydney declined by 14.5% due to market softness and ambiguity in labor’s proposed negative gearing policy. Australian Prudential Regulation Authority (APRA), which is a banking regulator in the state, proposed Reserve Bank to provide relaxation in the lending restriction. Hence, Reserve Bank’s indication on interest rate relaxation.
Louis Christopher, Research Chief Executive in SQM, said, “Before the election, it was clear buyers were sitting on their hands. I was attending a lot of auctions in Sydney, and there was lots of uncertainty, and we had a very low number of listings. With the election, we were predicting a return of confidence just if the Coalition was re-elected, so the combination of these other factors this week has been a boost to forecasts”.
According to Core Logic’s April month data, the average house price in Sydney earlier was $1 million, and now the price has dropped to $880,365.