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Australia’s main housing markets have been forecast to start declining in 2016/2017, with significant price drops expected for Sydney.
Sydney median house prices are forecast to fall by 3.3 per cent in 2016/2017, according to the annual Australian Housing Outlook, which was prepared by BIS Shrapnel for QBE LMI.
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Sydney prices will peak at $915,000 in 2015/2016, before dropping to $885,000 the following year.
The 2016/2017 financial year will also see price falls of 2.8 per cent in Perth and 0.7 per cent in Melbourne, while the Darwin market is expected to remain flat.
All capital cities except Perth are forecast to record absolute price growth between 2014/2015 and 2016/2017, although most capitals will experience a decline in real terms.
Brisbane is expected to lead the way with 17 per cent growth, followed by Sydney on 9.0 per cent and Adelaide on 6.4 per cent.
There will also be price gains of 5.3 per cent for Hobart, 4.9 per cent for Melbourne, 2.3 per cent for Darwin and 0.9 per cent for Canberra.
However, Perth prices are expected to decline by 1.9 per cent during that period.
Housing supply will have a big impact on prices through Australia, according to the report.
The sizeable deficiency in NSW is forecast to ease from 2015/2016, while the Victorian and Northern Territory markets will move from a modest deficiency into oversupply.
Rising excess stock will continue in South Australia, Tasmania and the ACT.
[Related: QBE report reveals why people use a bank or broker]
