Proposed Property Forecasts Australia-Wide
With COVID restrictions loosening across most of Australia, there has been a rise in homebuyers reconsidering their work, property and everyday living situations. And what timing, with our Aussie banks suggesting a positive outlook for property for the remainder of 2021.
What Are the Banks Saying?
ANZ Bank released a report recently predicting that national house prices will rise to 17% by the end of 2021, with a 6% decrease due in 2022. The report foresees the following house pricing increases for each capital city by the year’s end:
But why the decrease in 2022? Felicity Emmett – ANZ Senior Economist says the Australian Prudential Regulation Authority () are likely to introduce macroprudential processes to slow house price growth; this means that banks and financial organisations will follow a system of laws, rules and conditions to protect the entire financial system from risk.
Projecting a similarly positive outlook for 2021, the Commonwealth Bank property price forecast has increased from 8% to 10% in their latest report.
Westpac too remains optimistic, with CEO Peter King stating a growth forecast of 10% in housing prices for both 2021 and 2022.
Banks Are Not Alone
Also weighing in on the housing price forecast conversation is Chief Investment Officer Christopher Joye of Coolabah Capital Investments (CCI), who predicts a significant property price growth right through to the end of 2023! But how does he figure that?
If we reference the Reserve Bank of Australia’s housing market model, CCI’s forecast predicts house prices growth of 8% by the end of 2021, with an additional 9% in 2022, before enjoying its final peak in 2023 of 8%. With a total growth of 25% by the end of 2023, I’d say CCI is the most optimistic financial institution of all! And for good reason.
Sydney House Price Forecast
Offering variety in the way of lifestyle, property size, design, functionality and era in which the structure was built, there is little argument that Sydney is one city to watch in the coming year.
Having always enjoyed high demand, it would be hard to argue that Sydney house prices are known to be super affordable to the majority of people interested in living there – but with the banks joining forces in their forecast of a positive outlook for the remainder of 2021, first time homebuyers in particular may just be lucky enough to nab their desired property at a fair price (no NAB pun intended lol).
To give you an idea of where your money is best spent, let’s take a look at what’s trending in Sydney and why some home buying options are currently lagging in interest.
With buyers realising there are very few bargains to be found, and that by 2022, the properties available today will be considered more affordable, the surge of buyers entering the Sydney market in 2021 is astronomical.
Bargains are greatest in 2021 for investor buyers as the market highlights the owner occupier. Investors can utilize the buying opportunities over the coming quarter so as to capitalise on surging growth once international travel resumes.