Australia’s property market will take a breather
According to news reports, Australia will not see a property crash this year but performance could flatten. In a news report from CNBC, Stockland chief Mark Steinert predicts that Sydney’s previously hot property market may go flat in 2016 while Perth may fall. Rest assured, crashes will not happen since the property development company posted A$696 million ($492.5 million) first-half net profit, amounting to 51% increase.
Likewise, the increase in sales of commercial properties like shopping centers, indicate the Australian economy is also strong in general.
“The strong performance of our shopping center portfolio is a good pointer for the Australian economy in general,” explained the official.
Additionally, the residential property sector of the country is affected by growth in employment.
“We think Sydney prices over the next year will likely be flat, we think in Melbourne growth will be more around flat, [up] 2-3 percent, Brisbane [up] 3-4 percent, and Perth will probably see some continued weakness with the read-through from the mining sector,” said Steinert.
“It’s more [like] lower for longer from here, we think,” he added.
A new report from Sky News also supports the claims. According to Reserve Bank boss, Sydney will not lead to a property market out. Governor Glenn Stevens claims that Sydney and Melbourne – known as property hotspots – should take a breather.
“Obviously we don’t want a crash, but I think the pace of growth that we did have, you’d have to really worry if that continued on and on,” the official explained before the House of Representatives economics committee.
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