Sydney House Prices May Have Bottomed as Supply Stays Tight
- Supply low due to population growth, few completions, says BI
- Rents to keep rising in critically tight capital city markets
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House prices in Sydney — a bellwether for the Australian real estate market — may have found a floor as a home shortage and the central bank’s rate-hike pause stem declines, according to a report by Bloomberg Intelligence.
Housing supply remains tight due to increased population growth, declining new home and apartment completions, as well as reduced listing volumes as sellers hold out until the market stabilizes, BI analysts Mohsen Crofts and Jack Baxter said in the report. Still, they said Australia’s property recovery is likely to be muted in 2023 as affordability constraints continue.