The latest residential property forecast from BIS Shrapnel has revealed that house price growth will be sluggish but a crash is unlikely.
BIS Shrapnel is forecasting steady residential property prices through 2011, with some capital cities even showing moderate price growth over the following two years to 2013.
The report notes that while there have been price declines recently, a combination of factors will come together and see the market improve from 2011/12.
“Economic growth is forecast to regain traction through 2011, and continue to accelerate in 2012 and 2013 as resources investment flows through to the rest of the economy,” BIS Shrapnel senior manager and study author Angie Zigomanis said.
“Strengthening employment growth – the unemployment rate is forecast to fall below four per cent in 2013 – will also see net overseas migration inflows turn around, and the underlying demand for new dwellings begin to rise,” he said.
Perth and Sydney are expected to see the greatest increase in median house price between now and June 2014, with 19 and 18 per cent, respectively.