Believe it or not: Sydney property prices will grow 3.4pc next year

The Sydney boom is running out of steam and will be nothing but a memory in 2016, according to NAB.

The bank’s residential property survey of 300 people forecast that Sydney house prices would grow only 3.4 per cent in 2016.

According to the survey, the slowdown is already under way – house prices are forecast to increase by 7.7 per cent in 2015, compared to 12.8 per cent in 2014.

That seems to contradict CoreLogic RP Data research, which found that prices for all Sydney dwellings increased by 6.6 per cent between 1 January and 19 April.

NAB’s survey also forecast that Melbourne house prices would climb by 6.2 per cent this year and 3.5 per cent next year after adding 5.4 per cent last year.

Brisbane house prices, which grew 5.4 per cent in 2014, will grow 3.8 per cent in 2015 and 5.7 per cent in 2016.

Adelaide is forecast to experience house price growth of 0.4 per cent in 2015 and 5.2 per cent in 2016, compared to 2.9 per cent in 2014.

The Perth house market is expected to remain weak: growth of 1.5 per cent in 2014 is forecast to fall to 0.7 per cent in 2015, then rise to 2.5 per cent in 2016.

The NAB survey panel mainly consisted of agents, developers, valuers, investors, property operators and real estate fund managers.

[Related: Rule changes ‘would pull the rug’ from Sydney market]

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