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The price of real estate declines in Sydney and Melbourne "will get worse before they improve," according to the latest Deloitte Access Economics Prospects
Increasingly High Cost and Low Availability credit that harm the housing markets will generate "mini-credit crunch", which increases the pressure on house prices.
To this adds a momentum of "fear of fear" and hope that interest rates will eventually rise, even if the Reserve Bank has not acted Slow rising interest rates, the low unemployment rate and, most importantly, the population growth, will however dampen the The report adds: "Loans are down, they are in the longest drought since the global financial crisis, and investor lending has dropped to its lowest level in six years, "the report says. "That says that housing prices are falling – now infecting Melbourne – will worsen before they improve."
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"Despite more negative flags than you would see in a cardiac risk assessment on President Trump, we are still expecting a rather benign construction cycle.
"This benign nature owes a lot to what we do not see in the next two years.We do not see China falling and Australian unemployment jumping in. And we do not see global and local interest rates rising.
Uptick in commercial construction
"We still see the downtrend at the end of 2019 but, thanks to continued population gains, reach solid levels however, as long as the slowdown does not occur. not interrupt, the rate of construction and renovation of housing will decline over the next two years, offset only by a slight increase in the commercial construction of offices and hotels. [19659002Laforcedusecteurtouristiqueaustralienenparticulierdesvisiteursétrangersaentraînédesinvestissementsaccrusdansl'hôtelleriecommeleCrownSydneyHotelResortàBarangarood'unevaleurde22milliardsdedollars[19659006]. the largest rise in house prices among capitals.
Luxury homes will struggle to sell, but there will be less According to the report, Queensland defies the curse of excess supply
Like Sydney, the Melbourne housing market is also going to Weaken, but not to the extent that Sydney.
The scales will tip in favor of Queensland, which has challenged the curse of an overabundance of housing, with more people migrating from Sydney to the sun state.
"All of this suggests better times for housing construction in Queensland" says:
"Housing approvals have turned to a corner and construction starts seem to have bottomed out." Even though the overall pace Housing construction is expected to further subtract state growth over the next year, it will likely increase from there, as strong population growth absorbs the current oversupply. "
Perth is still The Doldrums and ACT can still be supplied, but any new growth in population and housing must be supported by better infrastructure at the national level, without which population growth should be reduced, warns the report
The report says:
Population growth is the foundation of a housing market that is slowing down but remains stable.
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