Baillieu Holst expects property prices to firm in wealthy suburbs and fall in middle to low income areas

Baillieu Holst expects property prices to firm in wealthy suburbs and fall in middle to low income areas. We continue to expect areas where substantial unemployment and middle to low income earners live (i.e. Canberra) to see property price decline in the next 1-2 year time frame while middle to higher income areas should trade sideways with affordability falling and rates remaining unchanged. The top end should continue to rise with overseas investors from Europe and Asia continuing to look at Australia as a safer location to park wealth.