ANZ, one of Australia’s largest banks, predicts that house prices in Sydney and Melbourne will grow by more than 12% a year by the middle of next year. In addition, the RBA also predicts an opportunity to achieve economic recovery in 2020. ANZ economists believe that changes in market sentiment and bank interest rate cuts and federal government income tax cuts will have a huge impact on Sydney and Melbourne, effectively offsetting the price decline from 2017 to the beginning of this year.
In 2012-2017, house prices in Sydney rose by 75%, while house prices in Melbourne rose by 58% during the same period. As of June this year, house prices in the two places fell by 15% and 11% respectively. ANZ believes that house prices in Sydney and Melbourne will rise by 3% at the end of this year; prices will increase by 12% and 13% respectively in the middle of next year. As of the end of this year, although the credit crunch and increased supply will achieve a slight rebound in housing prices, housing prices in Sydney and Melbourne will remain at 7% and 9%.
Governor Lowe said that RBA has made the economy grow by trend, and the task of returning inflation to the target of 2%-3% is arduous. He said: “In the past year, although the economy was a very weak period, it is actually gradually improving, and low interest rates are also playing a role.”
Http://www.yeeyi.com/news/index.php?app=home&act=article&aid=268286