By contrast, the other major capitals have recorded strong rises:Over the most recent quarter, dwelling values across the major capitals have risen 0.9%. By contrast, strong growth has been registered in Brisbane (+6.1%) and Adelaide (+5.5%), whereas Perth’s dwelling values have risen 2.3%:The next chart plots the quarterly change in dwelling values. Of particular note, Sydney has gone from price leader in May 2021 to prices falling the fastest:With interest rates tipped to rise sharply over the coming year, dwelling values nationally should begin to fall. If the median economist forecast is correct, and the Reserve Bank increases the cash rate by around 2%, then Sydney dwelling values could potentially fall by 15% to 20% peak-to-trough. For what it is worth, I expect a smaller increase in the cash rate to 1.25% and, therefore, a smaller correction in dwelling values.

Source: Stuff April 28, 2022 21:07 UTC