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Majority of capitals geared for growth in 2015

18 March 2015 Staff Reporter

Five of Australia’s capital cities are forecast to outperform their 2014 growth figures, despite a weakening economy.

Five of Australia’s capital cities are forecast to outperform their 2014 growth figures, despite a weakening economy.

New figures released by Domain Group have predicted Darwin to turn the corner from negative growth of 2.5 per cent in 2014 to positive growth of 2.0 per cent.

Perth prices are also forecast to climb 2.0 per cent, after only rising 0.6 per cent last year.

Brisbane is expected to post a 6.0 per cent growth in 2015, ahead of the 5.9 per cent rise experienced in 2014.

Hobart prices are also expected to rise by 4.0 per cent, up from growing just 2.1 per cent last year.

Canberra is forecast to grow 2.0 per cent – up from 0.9 in 2014.

The remaining three capital cities unfortunately are not expected to perform as strongly as they did in 2014.

Sydney's median house price is forecast to grow 8.0 per cent during 2015 following 14.0 per cent growth last year, according to Domain's figures.

Melbourne's growth will also decline, the forecast said, from 4.1 per cent in 2014 to 4.0 per cent in 2015.

Adelaide too will drop from 4.6 per cent to 4.0 per cent, Domain Group said.

Domain Group senior economist Dr Andrew Wilson said capital city housing markets have generally had a good start to 2015, despite the underperformance of most local economies.

“The February cut in interest rates, although not providing significant improvement to affordability, has nonetheless impacted buyer confidence and reinforced underlying market dynamics,” Dr Wilson said.

He said record-low interest rates in 2015 were likely to be offset by weakening economic activity, particularly rising unemployment.

“Sub-market activity will remain mixed, with growth prospects in the mid- to higher-priced brackets continuing to be the strongest performers of most local markets overall."

 

“The prestige market, which has been relatively subdued over recent years, should benefit from a rising stock market to finally regain its previous peak levels of 2007.”

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Majority of capitals geared for growth in 2015
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