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Sydney Property Prices Seen Falling 20% in Harbinger for Nation

  • ANZ predicts 20% fall in 2022-23; BI sees 12-15% drop in 2022
  • National prices may decline by 30% through 2025, Coolabah says
Houses in Sydney.

Houses in Sydney.

Photographer: Brendon Thorne/Bloomberg

Sydney property prices are expected to fall by up to 20% as rising interest rates amplify affordability challenges in one of the world’s most expensive markets. Such a result would likely augur nationwide declines.

Australia & New Zealand Banking Group Ltd. economists predict housing in the nation’s largest city will drop by one-fifth this year and next. Bloomberg Intelligence, off a tighter time frame, sees Sydney falling 12-15% in 2022, based on the cash rate climbing to 1.75% by December from the current 0.85%.