NAB says property falls in Sydney and Melbourne larger than expected as experts say slide will continue

PHOTO: The property slide in 2018 and early 2019 was larger than NAB expected. ABC News: Liz Pickering

NAB has revised down its prediction for property prices in Australia’s two biggest cities, saying the fall in values since the start of last year has exceeded its forecasts.

Key points:

Real estate prices in Sydney will reportedly decline by around 20 per cent
Over the same time, prices in Melbourne are expected to fall 15 per cent
AMP’s chief economist has said he expects home prices in both cities to continue falling

“We now expect Sydney to decline by around 20 per cent from peak to trough, while Melbourne is expected to fall around 15 per cent,” NAB Group chief economist Alan Oster said.

He added that the slide in 2018 and early 2019 was larger than expected.

According to CoreLogic estimates, real estate prices in Sydney have fallen about 14 per cent since their peak in 2017 while the slump in Melbourne has averaged about 10 per cent.