National Australia Bank is bullish about the outlook for the residential property market, and Sydney in particular.
NAB now expects house prices in Sydney to rise by 6.9% in 2023, compared with its previous forecast of a 2.2% rise.
NAB also forecasts 4.9% growth in Sydney house prices in 2024.
If anything, NAB’s Sydney house price forecast looks conservative.
According to CoreLogic’s daily index, Sydney dwelling values have already lifted 7.4% from their 7 February low:
This calendar year, Sydney dwelling values have risen by 5.9%, according to CoreLogic.
Sydney’s housing market is currently being pushed higher by extreme immigration and a resurgence in interest from foreign buyers.
Being Australia’s most expensive housing market, Sydney dwelling values should also benefit the most when the Reserve Bank commences its rate cutting cycle early next year.
Extreme immigration, increasing foreign buyer demand and falling mortgage rates will be red rag to a bull for Sydney home prices.
