Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

House prices to rise by 10pc: McGrath

By Staff Reporter
25 January 2010 | 1 minute read

McGrath Real Estate chief executive officer John McGrath has said he expects house prices to rise by as much as 10 per cent in 2010.

Advertisement
Advertisement

Speaking to journalists, Mr McGrath said Australia would see close to double digit increases in most parts of the market.

“I’ve been expecting 8 to 10 per cent increases in Sydney, and in some areas, it will be well beyond that,” he said.

“Historically, rates are still low. Of course we’re expecting some more rises, which we’ll see in a short space of time. But we’re finding 7 to 9 per cent is what most people are used to in terms of the mortgage cycle, so that will still be at the bottom end of that range.

House prices across Australia’s eight capital cities rose 6.2 per cent in the third quarter of 2009 from a year earlier, snapping three straight quarterly declines, according to the Australian Bureau of Statistics.

Mr McGrath said limited housing construction could hurt the Australian property market by causing prices to rise too quickly and cause a potential housing bubble.

“There has been very little construction over the past few years. While home building rose towards the end of 2009, the building cycle is a slow one, so I suspect that over the next couple of years, there will continue to be a lack of supply. But there is development opportunity in abundance, once the lending frees up, and people start building again,” he said.

House prices to rise by 10pc: McGrath
default
lawyersweekly logo

Tags:

Listen to other installment of the Real Estate Business Podcast

 

Do you have an industry update?

top suburbs

12 month growth
Queenton
69.76%
Flying Fish Point
69.61%
Point Piper
69.17%
Glenelg South
69.02%
Pretty Beach
69.01%
Bar Beach
68.9%
Northampton
68.7%
Kembla Grange
66.91%
Boomerang Beach
66.67%
Gnarabup
66.67%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.