Paul Dales, the chief economist for Capital Economics in Australia, made the prediction as house prices fell for the 11th straight month in august according to the latest housing data from CoreLogic.
He’s been backed by AMP Capital’s Chief economist Shane Oliver, saying property prices in Sydney and Melbourne may decline 15% by 2020 – another 10% on top of the falls already recorded.
Overall, prices are down 2.2% since their peak in September 2017, with Sydney, Melbourne and Perth leading the decline.
Mr Oliver does point out that Sydney house prices jumped 72% over five years to their August 2017 high, while Melbourne’s rose 57% to their November 2017 high so there have been strong capitals gains for homeowners.
But for operators it simply means those looking to make the move into a village are more likely to stay in the family home.
