Dr Andrew Wilson, Senior Economist for Australian Property Monitors has hosed down talk of a property bubble in Sydney due to looming tougher economic conditions. He says that Sydney market is about as close to a boom next year as it was to the bust that was widely predicted for last year. However, a rising unemployment rate and a sharp fall in rental yields will be a major drag on house price growth. In prestige markets, slow growth in wages and profits along with a stagnant sharemarket will also restrict growth. He notes the highest growth in the last 20 years were in the early 2000s, where price growth was over 20% per year. Were this to occur now, it would bring the median house price to an unlikely $900,000. (VIEW LINK)
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