The housing price booms in Sydney and Melbourne are not over yet – but probably will be within a year, according to a survey of property market professionals
The survey by the NSW division of the Australian Property Institute in October asked a range of valuers, funds managers, property analysts and financiers how long the upward trend in prices in the two surging markets would last.
For Melbourne, respondents were a little less optimistic for the short term, with half expecting the rises to go for only another six months and a further third tipping them to run for a full year.
But for both Sydney and Melbourne, only six per cent expected the boom to run for another two years and none predicted it to go beyond that.
The survey also canvassed opinions on whether the Sydney, Melbourne and Brisbane markets were “in a bubble”, leaving the respondents to decide for themselves how to define a bubble.
For Melbourne, only 44 per cent thought the market was not in a bubble.
Prices in Melbourne rose an average of 12.8 per cent over the year to October, according to CoreLogic RP Data.
That survey showed that while 68 per cent of people believe the national housing market is “vulnerable to a significant correction in values”, only 16 per cent expected prices to fall over the coming year, while 41 per cent expecting prices to rise.