Property slowdown to test Australia's love of real estate, says Merrill Lynch
House prices continue to decelerate from what is likely to be the last
property price boom Australians will see for many years, says Bank of America
Merrill Lynch, adding investors may be second guessing the validity of negatively geared investments.
March data shows that median capital city prices rose just 0.2 per cent,
with annual growth decelerating to 6.6 per cent year-on-year.
These figures are down from a July 2015 peak of 11.6 per cent year-on-year
and 11.9 per cent in April 2014.
"A period of weaker price growth or outright modest declines is likely to
become entrenched over coming years," said Merrill Lynch in a note to clients.
"We'd expect that such a period could severely test Australians' long love affair with property investment."
House prices continue to decelerate from what is likely to be the last
property price boom Australians will see for many years, says Bank of America
Merrill Lynch, adding investors may be second guessing the validity of negatively geared investments.
March data shows that median capital city prices rose just 0.2 per cent,
with annual growth decelerating to 6.6 per cent year-on-year.
These figures are down from a July 2015 peak of 11.6 per cent year-on-year
and 11.9 per cent in April 2014.
"A period of weaker price growth or outright modest declines is likely to
become entrenched over coming years," said Merrill Lynch in a note to clients.
"We'd expect that such a period could severely test Australians' long love affair with property investment."
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