House price growth in Sydney and Melbourne could slow to as little as 1 per cent this year, or values could even fall, amid the spectre of global inflation and the prospect of higher interest rates, economists and property market analysts say.
Even before this week’s oil shock triggered by the Middle East conflict sent petrol prices soaring, analysts were revising their expectations for the housing market in the two biggest cities. The war in Iran and its effects have only added to concerns that the Reserve Bank of Australia will be forced to lift rates further this year.
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