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Sydney and Melbourne 'will lead housing market in 2017'

Sydney and Melbourne could be set to lead the capital city housing markets throughout 2017. 

According to the latest forecast figures from the Domain Group, either city is predicted to reap the rewards of four and five per cent house price growth respectively. 

Canberra is expected to match Melbourne as a top performer with five per cent growth and Brisbane is set to expand its housing market by four per cent. 

It was indicated that while this does represent positive house price growth, it is a narrow rate of growth compared to the strong figures recorded in 2016. 

Indeed, the latest figures from the Australian Bureau of Statistics revealed that Australian capital city housing markets in particular have generally ended 2016 on a positive note. 

Lower interest rates and resurgent investor activity have combined to support an increased level of buyer and seller activity over the past six months. 

The standout performers are Sydney and Melbourne, where surging migration, relatively strong economies, an overall underlying shortage of housing and heady confidence contributed to very strong housing market figures. 

Significant levels of new stock was cited was cited as a major factor set to influence unit markets over the coming 12 months, as this could lead to supply outstripping demand. 

However, the Sidney market remains undersupplied, with demand continuing to offer stability to unit prices. 

Andrew Wilson, chief economist of the Domain Group, said factors like this have driven growth in the property market throughout the past 12 months. 

"Capital city unit markets have been impacted variously over 2016 by the recent record surge in new inner city apartment development reported in most capitals," he commented. 

"Despite unprecedented supply, unit prices in Sydney and Melbourne have increased strongly over the year, although growth levels in the Melbourne market declined over the latter part of the year."

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