In another recent article, AMP Capital’s Shane Oliver looks at what has been happening with Australian house prices. The key points are:

  • Property prices in Sydney and Melbourne are likely to see top to bottom falls of around 20% as credit conditions tighten, supply rises and a negative feedback loop from falling prices risks developing.
  • Other cities will perform better having not seen the boom of the last few years.
  • Property investors should remain wary of Sydney and Melbourne for now & focus on higher yielding markets.