PHOTO: Sydney

Sydney’s housing market has been forecast to rebound over the next three years after a nearly two-year downturn, but there will be a marked split in the fortunes of house and unit owners.

Modelling from QBE and BIS Oxford Economics predicts house prices will grow nearly 6 per cent between 2019 and 2022, while unit values would drop 0.3 per cent over the three years.

House prices would rise because of lower rates and relaxed lending criteria, which was increasing the number of active buyers in the market at a time when fewer freestanding homes were coming on to the market.

These conditions have already spurred a modest recovery in prices, with Sydney’s median home price increasing 1.9 per cent over the last three months — the first sustained rise since July 2017.

BIS Oxford Economics analyst Angie Zigomanis said there was plenty more “upside” in the market because of pent up demand for detached houses.

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