The increase in Australian property prices will tail off this year, it has been predicted.
Australian house price growth will slow to around five per cent in the next 12 months, according to one property expert.
Falling affordability and the end of government stimulus for buyers will constrain any possible gains, said Shane Oliver, head of investment strategy at AMP Capital Investors.
"Given constrained supply, low levels of mortgage stress and the improved economy, the most likely outcome is for constrained gains over the year ahead," he said in a note seen by Bloomberg.
A number of positives underpin the Australian property market, Mr Oliver continued, such as the "major undersupply" of houses.
Years of failing to meet new-build needs have been seen because developers faced restricted lending, the property expert explained.
Prices are also being kept afloat as Australians are able to pay off debt as employment rises and interest rates remain low, he continued.
A fellow property expert from Australian Unity Investments has also spoken of the strength of the Australian property market, pointing out that it recovered from the recession quicker than expected.
Posted by Craig Francis
Australian house price growth will slow to around five per cent in the next 12 months, according to one property expert.
Falling affordability and the end of government stimulus for buyers will constrain any possible gains, said Shane Oliver, head of investment strategy at AMP Capital Investors.
"Given constrained supply, low levels of mortgage stress and the improved economy, the most likely outcome is for constrained gains over the year ahead," he said in a note seen by Bloomberg.
A number of positives underpin the Australian property market, Mr Oliver continued, such as the "major undersupply" of houses.
Years of failing to meet new-build needs have been seen because developers faced restricted lending, the property expert explained.
Prices are also being kept afloat as Australians are able to pay off debt as employment rises and interest rates remain low, he continued.
A fellow property expert from Australian Unity Investments has also spoken of the strength of the Australian property market, pointing out that it recovered from the recession quicker than expected.
Posted by Craig Francis
