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Sydney and Melbourne house pric...

Sydney and Melbourne house prices expected to rise 10% by 2020

Although there have been concerns regarding an oversupply of apartments and continued growth of the property market in Sydney and Melbourne, experts are expecting the market to continue to grow over the next four years.

In fact, a survey from Finder asked 20 economists about their forecast for the market and 30 per cent believe that there will be at least a five per cent increase by 2020, reports Domain.

Further to this, a massive 35 per cent feel that it will perform even better and believe that the market will see a ten per cent improvement over the same time period.

It's true that this will make the market more difficult for first-time buyers, but it's great news for those who are looking to sell their houses. It's also going to be positive for those who are wanting to invest in the property industry in Sydney and Melbourne over the next few years.

Bessie Hassan, a spokeswoman from Finder, said: "It's typical of the cyclical nature of the property market. In fact, a five to ten per cent increase is somewhat conservative - it's a common belief that property value doubles every seven to ten years."

She added that although there had been worries about a 'housing bubble' in Australia "we've now seen a correction phase, where the property market has softened, yet it is likely to go up again in the future".

Experts who feel that the property market's prices are expected to rise include Shane Garrett from the Housing Industry Association and Grant Harrod, chief executive of LJ Hooker.

It seems that they might well be in good company with their opinions, as the past weekend's clearance rate in Sydney was incredibly high at over 80 per cent, considering Saturday 4th June was also the start of the winter season.

House prices in Sydney also saw a surge of 3.6 per cent in May, which has helped give the season a real kick-start.

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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