Boom may be over, says property expert

Boom may be over, says property expert

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Australia’s housing market is set for “a year of flat activity” in 2015, according to Domain Group senior economist Dr Andrew Wilson.

Dr Wilson said that while 2013 was a year of expansion with strong price growth and 2014 was a year of moderation, most markets next year will struggle to grow faster than inflation.

“Although the case is growing for an official rate cut in 2015, without improved economic conditions and a return of incomes growth and confidence, this is unlikely to have a significant impact on housing markets,” he said.

Consequently, Mr Wilson said house price growth for most capital cities will hover around the inflation rate in 2015, but the rate of growth in each city will depend on local supply-and-demand factors.

Mr Wilson said Sydney is set to remain the best-performing market, with growth likely to be at least twice the inflation rate.

“A top performing local economy and the continued undersupply of housing will generate consistent buyer activity over the year,” he said.

“Inner- and middle-ring mid-price range suburban regions are set to continue to record double-figures price growth.”

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