If you’ve read our earlier blogs and follow us on social media, we’re sure you know that the property market saw record breaking highs last year and is set to keep booming this year as well. Last year, Australia saw a massive boom in its property market with CoreLogic’s report revealing that the estimated value of Australia’s residential real estate had gone from $7.2 trillion at the end of November 2020, to a record high of $9.4 trillion in just 12 months, in November 2021!
Nationally, property values have grown 22% in a year, and are projected to maintain this growth! If we talk about the key metropolitan areas, then the rise in values are – Sydney at 25.8%, Brisbane at +25.1%, Canberra at +24.5% rise, Adelaide at +21.4%, Darwin at +16.7%, Melbourne at +16.3% and Perth at +14.5%. says CoreLogic’s Eliza Owen has also said, “What we’ve seen is the highest 12-month growth rates since 1989.” Even the regional markets have seen enormous growth. Thanks to city-dwellers escaping COVID-19 lockdowns and working from home, values in the regions (30.4%) have outpaced those in capital cities (24.6%).
Across Australia, home buyers are wondering if and waiting for the house prices to drop. The question every new and seasoned investor has in mind is, how exactly will the property market perform this year? Well, the numbers suggest that it’s not good news for those who were hoping for a dip in growth this year! NAB has forecast a 4.9% lift in property values in 2022 with ANZ’s outlook is a 6% hike. The Commonwealth Bank expects house prices to rise 7% this year and on the other hand, Westpac expects an 8% rise for the year!
With the borders reopening and the government giving incentives to non-citizens, the demand for houses is only going to rise, instead of slowing down. And not just property prices, the reopening of international borders will lead to skilled labour immigration and the return of international students, the demand for rental apartments will also rise. It is also being predicted that Australians will continue to seek out investments in coastal locations, with the beach side popularity continuing to boom. House prices in Somers in Victoria, Byron Bay in NSW and Sunshine Beach in Queensland have increased by 69%, 58% and 48% respectively over the past year and this increase is enticing home buyers to hone in on coastal areas that are affordable and poised for growth throughout 2022. Throughout 2021, investors have had the benefit of rising rents and equity growth, and with prices predicted to continue to rise this year as well, the investors will continue to reap these benefits and new investors will look to secure an investment sooner rather than later.
If you’re an investor who wants to secure your investment as soon as possible so you can continue to reap the rent and price growth benefits throughout the year, get in touch with us at at 02-81230180 or drop us an email at info@successavenue.com.au
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