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6 Nov 2015
Australia: House price outlook not bright in future - NAB
FXStreet (Delhi) – Research Team at NAB, suggests that the Australian residential property price growth has continued to surpass expectations in recent quarters, suggesting more limited scope for further gains.
Key Quotes
“Consequently, NAB Economics has reduced its forecasts for detatched house price growth in 2016. Nationally, prices are now forecast to increase 2% in 2016 (from 3%), largely reflecting a slower pace of growth in Sydney and Melbourne.”
“While price growth will slow, a sharp correction in prices is still not expected given supportive market fundamentals and continued foreign demand for new dwellings.”
“Risks have increased, however, especially in the apartment market which has seen a sharp increase in construction activity.”
Key Quotes
“Consequently, NAB Economics has reduced its forecasts for detatched house price growth in 2016. Nationally, prices are now forecast to increase 2% in 2016 (from 3%), largely reflecting a slower pace of growth in Sydney and Melbourne.”
“While price growth will slow, a sharp correction in prices is still not expected given supportive market fundamentals and continued foreign demand for new dwellings.”
“Risks have increased, however, especially in the apartment market which has seen a sharp increase in construction activity.”