After a stellar run, Sydney’s housing market is set for a correction, according to a recent Moody’s report.
Data from CoreLogic-Moody’s Analytics Australia Home Value Index Forecast predict prices in Australia’s most expensive housing market will fall 4.2 per cent in 2018.
After a 12.8 per cent gain in 2017, Moody’s expects the correction to be short-lived, and will recover a modest 0.9 per cent in 2019.
The prediction comes after growth in residential property prices eased in the December quarter, with through-the-year growth in Sydney slowing significantly.
Moody’s Analytics expects the largest declines will be seen in regions close to the city centre.
Related reading: Prices Slowing but Home Values Approach $7 Trillion
Not all Sydney suburbs are equal
The Moody group says house values in the city and inner south region are set to be the worst performing statistical areas for the harbour city, forecast to fall by 10.1 per cent in 2018.
“For the Eastern suburbs our forecast [expects a] 9.3 per cent decline in values in 2018 and a further 3.9 per cent decline in 2019, which would bring house values back to their level in 2016.”
Across the country, the Moody report expects Brisbane house values to increase 1.8 per cent this year and units to rise 1.9 per cent.
Melbourne’s house values are expected to rise a further three per cent this year as growth slows from 12.5 per cent in 2017.
Perth however is expected to continue its downward fall, with houses set to drop 1.9 per cent this year and apartments 0.5 per cent, before a recovery is forecast in 2019.
Hobart is the nation’s standout performer after a 12.9 per cent rise last year. The Tassie capital’s house prices are expected to increase a further eight per cent this year before losing 0.5 per cent come 2019.