Property prices to hold up over next two years
Sydney's property market is not expected to fall as much as other international cities as a result of the credit crunch affecting housing markets around the world says Citigroup. “The lower end of the Sydney property market is likely to outperform the top and middle ends of the market over the next few quarters. “Last year the top end of the housing market led the middle part of the market and it follows that the lower end of the market should see moderate price growth,” said Shane Lee, the director of economic and market analysis at Citigroup. Mr Lee forecast Sydney house prices to rise by 2 per cent in 2009 and by 7 per cent in 2010. “It is unlikely that Australian house prices will fall as they have in the US, the UK, New Zealand, Germany, Spain and Ireland,” Mr Lee said. RP Data said they expected this week's one per cent interest rate cut would prompt buyers to return to the market, especially in Western Sydney.
Source: Sydney Morning Herald