Ask anyone in Australia where property prices are at the highest and the answer will be simple; Sydney. For the last three years, the city has seen price increases the likes of which could not be matched anywhere else in the nation, but it would appear that one other popular city is set to take over from Sydney in the months ahead.
Melbourne has been the trusty second in command to Sydney for quite some time, with its price rises bridging the gap between booming Sydney and the rest of Australia. But it seems that Melbourne is not content to just accept this place in the market.
For years, Sydney and Melbourne residents have gone head to head over where you can get the best coffee out of the two, but according to SQM’s 2016 Housing Boom and Bust Report, they will soon be facing a battle of the property price.
The report states that next year, Melbourne will outpace a slowing Sydney when it comes to the rising price of property.
“We believe that Melbourne will be the outperformer of the year followed by the Gold Coast and Hobart. Each of these respective cities are benefiting from the lower Australian dollar,” said Louis Christopher, managing director of SQM Research.
This will come at a time when property prices are seeing something of a slower rise in price than we've seen in recent years, but a rise nonetheless. While many have predicted worse, SQM believes that capital city prices will be on the climb by between three and eight per cent, with Melbourne leading the way.
Overall, it said the market should remain positive, even though others are predicting falls.
“We forecast the national residential housing market will slowdown in 2016 predominantly as a result of a slowing Sydney housing market. However we do not believe the market will record a fall in prices for the year,” Mr Christopher said.
“There might be one quarter, perhaps, where Sydney records a marginal decline. But that should be it."