Property price growth will be subdued for the next 10 years, an industry commentator has claimed.
Speaking to Real Estate Business, BIS Shrapnel’s managing director Robert Mellor said property prices will grow by no more than 5 per cent each year.
“These are not boom conditions,” he said.
“People have to get used to the fact that over the next five to 10 years, strong growth will be in the order of five per cent, while weaker years will see just 2 to 3 per cent growth.”
Mr Mellor said Australia is unlikely to see the rapid growth of previous years again anytime soon.
“That growth was stimulated by various incentives, and as we are unlikely to see incentives return, we won’t see extraordinary growth return either.”