Latest Sydney house price predictions 2011

Latest Sydney house price predictions 2011

Overall the Sydney house prices are likely to decline by 0-4 percent in 2011 while the rents are likely to increase by more than 7 percent.

Here are some Sydney house prices and rents predictions for 2011.

(1) Vacancy rates to remain tight for most of the market and that means at least 7-9 per cent plus rises in rents for 2011.

(2) Building approvals to soften as investors largely stay on the sidelines following very high interest rates.

(3) Outer ring in Sydney, particularly the south-west and west, will outperform in rents and capital growth. The affluent end of the market is going to underperform once again. And watch out for properties around the $1 million mark – they are likely to be discounted most.

(4) The 2011 average home loan interest rate will not go over 8 percent otherwise the Sydney property market will be hit too hard.

Here is the 10 years trend chart of Sydney house and unit prices.

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