Boom far from over

In a scenario where rates remain unchanged, the economy stays steady and the Australian dollar remains above 85 US cents, Mr Christopher predicts the weighted average growth of all cities will be five to nine per cent.

In this scenario, Sydney would continue to record outstanding growth of eight to 12 per cent.

Melbourne and Brisbane would be the next strongest performers – Melbourne would record growth of five to nine per cent while Brisbane is tipped for five to eight per cent growth.

Adelaide is also tipped for a pick up, with growth of four to seven per cent, while Hobart could experience growth of three to six per cent.

Perth, Canberra and Darwin are expected to be the worst performers in this scenario, with Darwin’s growth ranging from -3 per cent to one per cent.

If rates were to fall in the first quarter of 2015, the weighted average may creep up to around seven to 12 per cent.

However, if rates were to rise in mid- to late-2015, national growth may be a more subdued three to six per cent.

In its September meeting minutes, the Reserve Bank signalled its intention to keep rates at 2.5 per cent “for the next year at least”.

Mr Christopher said while prices were elevated, fears of a pricing bubble were unfounded.

“The market is somewhat overvalued but not by as much as what some have very publicly stated. I don’t believe at this stage the market is in a bubble,” he said.

“Some cities are heading into overvalued territory, but the point overall is the market is far from a bubble situation when taking into account historical valuations over the past 30 years.”

The full results are reproduced below:

Source: SQM Research