The UK’s decision to exist the European Union could place upward pressure on residential property prices in Australia, new analysis shows.
Research from Macquarie economic analyst James McIntyre reveals that Brexit is likely to prompt more expatriates to return home and deter locals from heading abroad helping to drive up domestic demand for property in Australia, which in turn would almost certainly push up house prices.
Macquarie analysts predicted last year that Australian property prices would fall by an average of 7.5% from March this year, citing weaker population growth and a ‘bulging’ pipeline of new homes being supplied. But with higher net migration, caused in part by Brexit, expected to lift demand for housing, McIntyre believes that there is now the “potential for a less negative house price outlook” across Australia.
Join the conversation
Be the first to comment (please use the comment box below)
Please login to comment