SQM Research: Sydney house values projected to increase in 2014

Sydney-property-values-are-on-the-rise-_16000816_800510274_0_14085406_300Housing prices are expected to increase in the new year and the latest report from SQM Research has predicted that Sydney will lead that growth, with increases as large as 20 per cent in 2014.

According to the Housing Boom and Bust Reports, which feature forecasts for the coming year in real estate for each capital city, Sydney is expected to experience average capital gain growth between 7 and 11 per cent.

This is taking into account a predicted rise in interest rates, expected to occur in mid-to-late 2014, as the cash rate slowly begins to increase again. This is following the period of growth being experienced now, with interest rates and affordability stimulating the market.

Louis Christopher, managing director of SQM Research, said that the housing recovery is expected to enter into an “accelerated phase” after beginning in the last quarter of 2012.

He went on to say that a housing boom of the sort would be trouble for the Reserve Bank of Australia, especially if the national level of growth trailed significantly behind that of Sydney.

For example, the projected growth for Melbourne during the same period is estimated between 4 and 7 per cent, and Perth is projected to grow between 4 and 8 per cent.

With these projected changes on the horizon, now could be the perfect time to enter the Sydney property market.

Regardless of whether you’re a first home buyer or a property investor, taking advantage of the low interest rates and increasing affordability of property now could be a great opportunity.

This news is especially good for investors hoping to increase their wealth through rapid capital gain increases. With expected growth reaching a minimum of 7 per cent, property investment could be a lucrative, beneficial avenue heading into the future.

Leave a Reply

Your email address will not be published. Required fields are marked *