House price growth in Melbourne is tipped to outperform Sydney next year while Perth and Darwin property markets are expected to go backwards.
The latest SQM Research shows that, overall, Australian residential property prices in 2016 are predicted to rise at their slowest pace since 2012.
“We forecast the national residential housing market will slow down in 2016, predominantly as a result of a slowing Sydney housing market,” SQM managing director Louis Christopher said.
Melbourne is forecast to overtake Sydney as the best performing capital city with a rise in dwelling prices of between eight per cent to 13 per cent.
Sydney home prices are predicted to rise between four per cent and nine per cent next year, after 19 per cent growth in the year to June.
But Perth and Darwin are expected to experience price falls of between one and seven per cent, due to their exposure to the resources downturn.
Perth and Darwin are likely to contribute to the national market slowdown in combination with tighter financial regulations, a slowing national economy and Westpac’s announcement to lift home loan rates out of sync with the Reserve Bank of Australia’s cash rate.