In the latest Oliver’s Insights, Dr Shane Oliver looks at the outlook for Australian house prices and specifically the much talked about risk of a property crash.
The key points are as follows:
- Talk of a property crash is likely to ramp up again with signs that the Sydney and Melbourne property markets are cooling. But the Australian property market is a lot more complicated that the crash calls suggest.
- We continue to expect a 5-10% downswing in Sydney and Melbourne property prices but a crash is unlikely and other capital cities will perform better.
- It remains a time for property investors to exercise caution and focus on laggard or higher-yielding cities or regions.