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- House price growth in Sydney and Melbourne is set to halve in the coming months, says HSBC chief economist Paul Bloxham, the latest economist to have a stab at when the property market might come off the boil.
Following a lull over Christmas, Sydney and Melbourne house prices grew 13 per cent and 14 per cent respectively year-on-year in May and have pulled the national market to an average year-on-year growth rate of 10 per cent.
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HSBC expects tighter lending standards, an oversupply of apartments and the recent taxation of foreign buyers to ultimately weigh on the market and forecasts national growth to slow from 9 per cent in 2015 to around 4 to 5 per cent in 2016. Photo: Tanya Lake