News & Blog
Apr 15, 2016 at 12:23 pm | 0 Comments
A new reporter regarding forecasting of property prices is released, that shows that the property prices in Melbourne is expected to face a downfall in the coming time.
The study is done by national property market researcher Propertyology, which predicts that the loss in property prices will be caused due to increased oversupply as well as the increased loss in employment.
Propertyology market analyst Simon Pressley said, “Propertyology believes that the 2016 supply-demand fundamentals for greater Melbourne resemble those of Perth in 2014. The housing supply pipeline exceeds population demand in Melbourne to the tune of approximately 12,000 dwellings per year”.
He further added, “Of even bigger concern is the impact on as much as six per cent of the city’s households from car manufacturing plant closures from late 2016 and continuing through 2017. One would have to anticipate there’d be a significant knock-on effect to consumer and business confidence across the entire city”.
It has been noted that sixteen of greater Melbourne’s 31 local government areas (LGAs) have approved 50 per cent more dwellings than normal, even though the population growth rate has remained the same.
For further details of what will actually happen in future, let’s stay updated with the latest news in the industry.
News Source: https://www.realestatebusiness.com.au/breaking-news/10489-real-estate-downturn-looms-for-one-capital-city