HSBC Doubles Its Price-Rise Forecast for Australian Homes
- Sydney forecast to rise by up to 12% in 2020, Melbourne 14%
- Rebound comes as lending restrictions eased, rates cut
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HSBC Holdings Plc has more than doubled its forecast for Australian property price increases next year as low interest rates and looser borrowing rules send buyers flooding back into the market.
The bank now expects nationwide prices to rise by 5% to 9% in 2020, up from previously expected gains of 0% to 4%, Paul Bloxham, HSBC’s chief Australia and New Zealand economist, said in a note on Tuesday.