Forecasters divided on property outlook

Australian Property Monitors predicted that house prices in Sydney would fall 10 per cent if interest rates were to rise a third time this year, which APM said would leave the city's property prices 20 per cent less than levels in 2002. Prices in Brisbane and Melbourne would fall 18 and 15 per cent respectively, APM said. BIS Shrapnel predicted Sydney prices would decline by two per cent by the middle of next year. BIS said it expected property prices would increase by three per cent in each of Brisbane and Perth, by two per cent in Melbourne, and by one per cent in Adelaide and Hobart.