property price growth

Why property price growth will slow down later this year

PHOTO:  The big banks are still generally optimistic about the housing market with ANZ forecasting a 19 per cent surge in Sydney house prices in 2021 as capital city values climbed by 17 per cent. Apartment prices aren’t rising at the same pace. Pictured are Mascot Towers in south Sydney

  • Commonwealth Bank chief Matt Comyn said city centre unit price growth weak
  • He noted house prices had surged as CBD apartments ‘performed more poorly’ 
  • ProSolutions Private Clients mortgage broker said outer suburbs most at risk

Australian property price growth is expected to slow later this year with city apartments and houses in the far outer suburbs most at risk.

National property prices surged by 2.8 per cent in March – the fastest monthly pace since October 1988.

Sydney did even better with median house prices surging by 4.3 per cent in little more than four weeks to an even more unaffordable $1.112million, CoreLogic data showed.

While house prices are growing, apartment values aren’t going up at quite the same pace, with national unit values last month edging up by 1.9 per cent.

Australian property price growth is expected to slow later this year with city apartments and houses in the far outer suburbs most at risk. Pictured are houses at Cecil Hills in south-west Sydney

Australian property price growth is expected to slow later this year with city apartments and houses in the far outer suburbs most at risk. Pictured are houses at Cecil Hills in south-west Sydney

Commonwealth Bank chief executive Matt Comyn said unit values had not performed as well during the real estate boom, especially near the city.

‘Apartments in particular, have performed more poorly over the last 12 months, particularly in CBD areas,’ he told a parliamentary hearing on Thursday.

‘Whereas, freestanding, detached housing has performed much better.’

Property price records in March were set in 61 of Australia’s 88 sub markets.

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