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Australian house prices fell for a sixth straight month in September, and experts say the property market could experience falls of up to 15 per cent in the coming months off the back of higher interest rates and cuts to housing tax breaks.
Cotality's Home Value Index fell 1.1 per cent in September, taking cumulative declines to 5.2 per cent below March's peak. The median home value is now just under $900,000.
Cotality's research director Tim Lawless predicted housing values would continue falling into 2027 because of higher interest rates.
Queensland developer Soheil Abedian has built tens of thousands of homes and is behind luxury developments on the Gold Coast, including Australia's tallest building, Q1, and the former Palazzo Versace resort.
He said if interest rates continued to rise over the next six to 12 months, the construction sector would see more bankruptcies.
AMP chief economist Shane Oliver said in a worst-case scenario where the Iran war dragged on, oil prices skyrocketed to $US150 a barrel and people began to lose their jobs, house price falls could be as high as 20 per cent.
"This is already shaping up as the biggest downturn in property prices that we've seen in the last 40 years," he said.
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