Original article by Michael Bleby, Tim Boyd
The Australian Financial Review – Page: 3 : 24-May-19
AMP Capital’s chief economist Shane Oliver is predicting that Sydney and Melbourne house prices will not fall as far as previously expected, and that prices will bottom out by the end of 2019, rather than during 2020. Oliver cites the federal election result, which put an end to uncertainty regarding negative gearing and capital gains tax, as one reason for his change of forecast. Other factors that suggest a pickup in housing sentiment include expectations that the Reserve Bank will cut interest rates soon and the Coalition government’s plan to assist first-home buyers.
AMP CAPITAL INVESTORS LIMITED, RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN LABOR PARTY