Residential property price growth is expected to tumble over the coming 12 months, new research has found.
According to NAB’s Residential Property Survey, Australian house price expectations have slipped to just 1.4 per cent growth – down from 5.2 per cent recorded in the March quarter.
Following very rapid growth over the past 12 months, Melbourne has seen the most notable change, leading last quarter’s expectations at 5.8 per cent but now finishing last nationally at 0.7 per cent.
Sub $500,000 properties are tipped to outperform the market, with properties valued over $2 million expected to fall.
Foreign buyers expected to account for around 9 per cent of all residential purchases over the next 12 months.
Properties traditionally favoured by first home buyers, those within the $250,000 to $500,000 price range, are expected to realise the highest percentage capital growth over the next 12 months, for both housing and apartment stock.
In contrast, homes and apartments over $2 million are considered the worst investment options, according to NAB’s survey participants.