• Treasha Lim

Sydney and Melbourne house prices will soon be growing at double-digit rates.

Updated: Oct 20, 2019

Sydney and Melbourne house prices will be growing at more than 12 per cent per annum by the middle of next year, one of the nation's largest banks has forecast as the Reserve Bank talks up the chances of the economy recovering in 2020.

Economists with the ANZ believe a change in sentiment along with cuts in interest rates and the federal government's income tax reductions will super-charge Sydney and Melbourne to a point they will effectively wipe out the price falls recorded between 2017 and early this year.

Sydney dwelling prices rose by 75 per cent between 2012 and 2017 while over the same period they increased by 58 per cent in Melbourne. They then fell 15 per cent and 11 per cent respectively until June.

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