NAB’s residential property index forecast that house prices would continue to “correct” over the next 18 to 24 months, with Sydney falling around 10 per cent peak to trough and Melbourne 8 per cent.
“NSW had gone from the top of the ladder to the bottom,” Property Council NSW executive director Jane Fitzgerald said.
ANZ and Property Council of Australia’s seperate survey revealed similar declines to property industry confidence with NSW dropping 14 index points from 134 to 120 over the quarter and 27 index points over the 12 months to December 2018.
The survey assessed the views of more than 900 participants, including owners, developers, agents, managers, consultants and government – across all major industry sectors around the country.
Across Australia, prices have fallen for 11 months in a row with fewer active buyers within the market leading to higher inventory levels and reduced competition.
“A combination of tighter lending, a slower residential market and lower economic growth expectations have driven lower sentiment,” Fitzgerald said.
“What we do not want is for this lower sentiment to result in lower housing supply.”
“We have been building more homes over the past five years to meet growing demand however this must continue; the housing targets outlined in the Greater Sydney Commission’s plans must be met and then we must set more for the next 6-10 years.