Author and property investment adviser Niro Thambipillay says those waiting for a bubble to burst should not hold their breath. “With Australia’s growing population, especially in Sydney, Melbourne, Perth and Brisbane, prices will be higher,” he said. “These cities will also become extremely apartment dominated, similar to New York with fewer people living in houses.”
Mr Thambipillay also said there would be no US-style property crash in Australia either. “This is mainly because of the growing population and the fact that Australian mortgages are also generally full-recourse, which means homeowners can’t just walk away and hand back the keys as lenders will chase them and borrowers must pay costs unlike in the US,” he said. “So although there will be periods of flat growth in our major centres, over the next 20 years, you’ll see prices be at least 50 per cent higher than what they are today, if not closer to double.”
High-profile property investor Nathan Birch agrees. “The eastern seaboard will be the winner in 20 years’ time,” he noted. “I expect that we will see another two boom cycles go through most parts of the country. The more houses we can build, the more affordable house prices will be, but I don’t believe we’ll be able to keep up with demand from population growth.”
Founder of residential property investment firm Meridian Australia Glenn Piper said Sydney was most likely to stay out in front. “Anything could happen over a 20-year period, however, it would be hard to see any city top Sydney for the most expensive city in Australia,” Piper said. “It is Australia’s largest economy and has the Sydney Harbour where the most expensive homes in Australia are located.”
