The property downgrades continue with AMP chief economist, Shane Oliver, now predicting a 20% peak-to-trough decline in Sydney and Melbourne dwelling values:
At the start of August, Oliver said he expected price falls in Sydney and Melbourne to max out at 15% from peak to trough.
He now expects price falls in those markets will reach 20% as “credit conditions tighten, supply rises and a negative feedback loop from falling prices” develops.
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
