Property prices to keep growing

PROPERTY prices are tipped to grow throughout all capital cities this year with new forecasts tipping average capital city house prices will rise by about 6 per cent. Brisbane, where values have been soft for some time, is tipped to be ahead of the pack with an increase of 6.4 per cent this year and 6 per cent next year. The NAB report predicts that while Sydney finished last year with about 13 per cent growth in values it still had some room to manoeuvre, with a 6 per cent increased predicted for this year. Perth, another strong performer last year, is also predicted to see price growth for houses of about 6.3 per cent. While the figures may differ from forecasts by ANZ chief economist Warren Hogan this week, the sentiment is still the same, prices are starting to claw their way back up. According to NAB in 2011 every capital city market had values drop from between 3.2 per cent and 5.6 per cent.Values in Adelaide are not expected to jump significantly this year because of high unemployment and an “underperforming” state economy. The top suburbs and regions expected to outperform in Queensland this year are Brisbane, Bulimba, Caboolture, the Gold Coast, New Farm, Toowoomba and West End. In Victoria it is Cheltenham, Frankston, Glen Iris, Hastings, Highett, Melbourne, Point Cook, Richmond and Toorak. In New South Wales the top performers are tipped as Blacktown, Darlinghurst, Dulwich Hill, Liverpool, Marrickville, Penrith, Potts Point, Rosebery, Surry Hills and Sydney. Perth’s top performers will be Mandurah, Maylands, Perth, South Lake and Subiaco. Only one suburb was tipped to outperform in South Australia — St Peters, and one suburb in the Northern Territory — Darwin. NAB Capital City House Price Forecasts 2014 Brisbane — 6.4% Perth — 6.3% Sydney — 6% Melbourne — 4.6% Adelaide — 2.1% Capital city average — 6% Source: NAB

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