A new report by property researcher SQM predicts average house prices in Sydney could rise by as much as 20%, fuelled by record-low interest rates and improved consumer sentiment.
Reported by The Australian, the research predicts prices in Sydney could increase by between 15% and 20% in 2014. That would be double the price growth in Perth, the next best performing city.
There, SQM predicts gains of between 4% and 8%.
“Sydney is turning into a beast unto itself,” SQM managing director Louis Christopher told The Aus.
Economists and recently The International Monetary Fund have warned low interest rates around could cause housing bubbles in various countries.
In its minutes yesterday Australia’s central bank warned lenders needed to be prudent in their allocation of mortgages to ensure a bubble is not encouraged here.
There is more here.
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