New data shows that Australian properties will continue to climb in value, putting them even further out of reach for first-time buyers.
Homebuyers hoping for house prices to plunge in 2022 may want to think again.
The Australian property market is expected to grow by almost 10% over the next 12 months, according to REA Group. PropTrack Real Estate Market Outlook Report 2022 released on Saturday.
The report predicts that house prices will increase by 6-9% in Australian capital cities combined in 2022.
Although this is down from last year’s unprecedented 24% rise, it still means you would have been better off buying a home before the pandemic.
However, it could provide a rare opportunity to break into some of the major capital markets experiencing falling demand.
Melbourne, Sydney and Perth face the slowest growth this year.
Hobart could lead the country’s price growth this year with an increase of up to 12%.
Brisbane is also a bit of a frontrunner, with expectations that property values could increase by up to 11%.
Then come Adelaide and Canberra around the 6 to 9% mark and Darwin between 5 and 8%.
“Brisbane and Hobart are expected to experience the strongest price growth among capital cities thanks to their low supply of inventory for sale, increased demand and relatively lower prices compared to Sydney and Melbourne,” the author said. report, Cameron Kusher.
Sydney and Melbourne are expected to rise between 4 and 7% while Perth is a notch lower at around 3 to 6%.
“On the other hand, Perth, Sydney and Melbourne have the lowest price growth forecasts for the year,” Mr Kusher said.
“Perth has already shown a stronger slowdown in price growth compared to other capitals, while more expensive house prices in Sydney and Melbourne could increasingly see demand leave these cities and move towards more affordable housing markets.”
In fact, Perth haven’t been top performers for a while now.
WA’s capital grew by 9% last year, the only capital to grow below 10% in the bumper year of 2021.
Sales records from Realestate.com.au revealed there were 40.1% more sales nationwide in 2021 than in 2020, explaining the record year.
However, this is a surge that is unlikely to happen again this year in hopes that Covid-induced lockdowns are now a thing of the past, according to the report.
“Seller confidence returns after shutdowns,” the report said.
New listings were up 16.6% year-on-year in October, 35.3% in November and fell slightly, though still positive, in December to 11.3% higher .
“The removal of Covid-19 restrictions means buyers may be less likely to spend as much of their income on housing in the months and years to come,” Kusher said.
“Some potential buyers may even decide that their current home is enough.”