Which Australian property market is expected to see an average capital growth rate of 7.39% per annum over the next eight years? And which market is only being tipped to grow by a paltry 0.46% each year? Read on for the results. You may well be surprised.
Houses in New South Wales will be the standard bearers for Australia’s property market over the next eight years, according to the latest predictions from Residex, but Sydney has been pipped by its regional rivals when it comes to the data provider’s number one tip.
Perhaps surprisingly, houses in the ‘NSW Country’ take the top spot with the prediction that the median price in this category will rise by 7.39% pa over the next eight years. Sydney houses take second place with a 7.32% prediction.
The Brisbane house market is tipped to be the third best performer, with its average annual growth prediction over the next eight years of 6.55%, and Residex CEO John Edwards is upbeat about the city’s prospects.
“It seems to us that by September, or perhaps even a little earlier, we will be able to report growth in this market again. The rental yield for houses is a respectable 5.1% and our projections as to future median growth, while not outstanding are respectable,” he said. “This is definitely a market which is now worth exploring for bargains and future quality returns.”
The next highest predictions for average annual growth go to NSW Country units (6.07%) and Qld country houses (6.06%).
At the other end of the scale, units in the Vic Country category are seen as something of a no-go zone with their average annual growth prediction of just 0.46%. SA Country units take the second-bottom spot (0.95%), followed by Adelaide units (1.18%) and SA Country houses (1.3%).
Source: API Mag.