Australian house prices continue to decelerate from what many experts say is the last property price boom the country will see for many years.
March data shows that median capital city prices rose by just 0.2 per cent and annual growth decreased to 6.6 per cent year-on-year. These figures are lower than the July 2015 peak of 11.6 per cent year-on-year and 11.9 per cent in April 2014.
While declining house price growth has not influenced household spending or confidence, some banks predict significant oversupply intensifying the apartment sector over the next 12-18 months, particularly in the central districts of Brisbane and Melbourne.
However, the oversupply issue could take years to resolve, especially as falling Australian immigration numbers slow population growth.
Property owners with negatively geared investment properties may need to hold onto those properties for longer to achieve sufficient capital growth.
Those with negatively geared properties may also face regulatory risks over this period, with taxation statistics suggesting that one in six landlords in 2013-2014 was eligible to pay tax and be a potential target for government tax policy.
However, due to the low-interest rate environment, the average rental loss per landlord has declined from $11,000 in 2010-11 to $8,700 in 2013-14.