Sydney to Lead Australia Housing in 2014 With 20% Jump, SQM Says

Sydney will lead a jump in Australian home prices, which will soar as much as 20 percent in 2014, as demand driven by record-low interest rates meets a lack of supply, according to SQM Research Pty.

Prices across Australia’s major cities could rise as much as 11 percent on average in 2014 in SQM’s base-case scenario, which assumes no more than one 25 basis-point interest-rate cut by the central bank, the Sydney-based property researcher said in its Housing Boom and Bust Report. All of Australia’s major cities will see increases, except Canberra, which is expected to record declines of as much as 4 percent, it said.