There’s no doubt the 2021 boom has been a once-in-a-generation phenomenon for the Australian property market, with breathtaking growth seen all around the country.
As the year winds down it’s a good moment to take stock of what’s happened and, with the help of some expert industry analysis, look to what comes next.
We’ll be comparing 2022 forecasts from Westpac, ANZ, Commonwealth Bank and independent financial analyst Louis Christopher’s SQM Research to find out what path the market maytake over the next 12 months.
The 2021 surge should be followed by more moderate growth in the new year
Following the unprecedented effects of the pandemic throughout 2020, many economists tipped 2021 to be a dark year for real estate growth.
Instead, we’ve seen staggering gains in just about every city and state. The final rate of national growth for the year is expected to be around +22 per cent, the largest annual jump since 1989.
There are a number of factors that look to be putting the brakes on that rapid increase, though.
Affordability pressures are putting the squeeze on buyers. A surge in new listings is evening out supply and demand. Fixed rate mortgages are on the rise and there may be further tightening to lending standards by APRA.
On the other hand, the Australian economy is proving to be very robust, vaccination rates are high, immigration is set to return in earnest, and interest rates, even if they do rise, will remain around record lows.
That’s led economists to predict a reduced but still strong national rate of price growth of between about +5 and +8 per cent for 2022.
Let’s take a look at what’s in store for each state.
Article Source: www.openagent.com.au
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