Numerous commentators and industry leaders have refuted the Macquarie Bank forecast of a 7.5% decline in property prices between 2016 and mid-2017.
Stockland CEO Mark Steinert said he expected house prices to continue to rise next year. His forecast is about 3% to 5%, as an average across the capital cities.
“There has been quite a lot of talk for quite a long time about the imminent downturn in housing, but no one has mentioned that it hasn’t actually eventuated,” Steinert told a Property Council lunch in Melbourne. “The economy is growing at around 2.5%, we have a low Australian dollar, continued population growth and metro housing markets that are generally under-supplied. These are not the pre-conditions for some sort of general correction in housing.”
Business commentator Peter Switzer said the Macquarie forecast “bordered on being stupid”. Lend Lease CEO Steve McCann said that the market had plateaued but there was no further risk, while Dexus Property chief Darren Steinberg said there was another two years to run in the current property cycle.