Friday, 28 December 2007

House prices to rise by only 3 per cent in 2008

House prices in Parramatta (2150) are expected to rise by up to 3 per cent in 2008. Prices in suburbs close to Parramatta are not forecast to rise by more than 4 per cent, according to Australian Property Monitors' survey in "The Australian Financial Review".

In comparison, the highest percentage increase in the metropolitan area of 9 per cent plus is forecast in suburbs such as Pyrmont (2009), Bondi Beach (2026), Northbridge (206s), Gordon (2072) and Manly (2095).

The median house price in Parramatta in 2007 was $$417,00, Granville $340,000, Westmead $388,000, Northmead $443,000 and North Parramatta $520,000, compared with Darling Point $4 million,Bellevue Hill $2.5 million, Mosman $1.9 million, Northbridge $1.7 million and Manly $1.4 million

"You get this sense that Sydney is becoming quite a divided city - it's a city of haves and have-nots, of fabulous wealth and almost an American underclass of mass working poor," Michael McNamara, GM, of APM, said.

For example, growth in 2007 in Northbridge was 24.1 per cent and Gordon 21.9 compared to falls in the last 12 months by up to 8.5 per cent in Merrylands, Guildford, Chester Hill, Carramar and Smithfield, all suffering major mortgage stress and south-west of Parramatta.

Median house prices across the Sydney metropolitan area rose by 4.6 per cent in 2007 according to Australian Property Monitors, however, RP Data's figures show a 7.8 per cent rise, while remaining flat in Liverpool, Fairfield and outer Western Sydney.