Australian Property Forecast Reveals Big Growth In The Next Year

Australian Property Forecast Reveals Big Growth In The Next Year

After Australia’s first recession in 30 years, many people are worried about the property market in 2021. Will there be another house market crash? How will consumer confidence affect the property market? According to various forecasts, Australia is anticipating a healthy housing price growth for next year.

Although the exact future of the housing market remains uncertain, we have seen how the market prevailed during the COVID-19 pandemic. If the market survived 2020’s wrath, 2021 can only bring smooth and fast recovery. Experts are certain 2021 will be a year of growth for the property market.

We have seen how property prices increasing in 2020 have defied predictions of a 10-20% drop due to the pandemic recession. So, what’s in store in 2021? Here are some of the market predictions for next year and beyond.

• ANZ economists forecast price gains of around 9% in all capital cities in Australia. They also predict Sydney prices to rise by 8.8 per cent while Melbourne will slow slightly at 7 per cent.
• Westpac forecasts a small 5% decline in house prices in 2021 but a 15% surge in 2022 and 2023.
• Macquarie forecasts a 6% – 7% rise in property price by the end of 2020. This momentum will continue up to 2021.
• CBA forecasts a 6 per cent peak and a strong rebound in prices in the second quarter of 2021.
• CoreLogic believes the national home value index will surpass pre-Covid levels in 2021.
• Rent prices will grow in 2021 as borders open and tourism resumes. House prices in Brisbane will see the strongest growth over the next three years. Recovery in Perth will be long and slow in 2021.
• House prices will rise in Melbourne just below the pace of inflation
• Queensland will be rank #1 as the destination for internal migration.

Australian Housing Market Face A Better Year in 2021
Consumer confidence has increased and will increase even more. People are finally spending money and buying stuff again. Business is back from the dead and we’ll see more houses sold again. The rate cut will also give investors more confidence to invest in properties. We’ll see a healthy property market in 2021.

Home loan borrowing will skyrocket.
The industry will be all well again. Last September, Australians borrowed almost $16 billion to purchase new homes or renovate their old ones. This is a huge increase from the 2019 figure. Primarily caused by rock-bottom interest rates and generous government incentives, more people will borrow and buy homes. This is great news for all investors and sellers.

Banks will open for new businesses.
There will be fewer and fewer bank loan deferrals. People will be able to pay their mortgages on time and save more money.

We are positive that 2021 will be a good year for the housing market in Australia. The country is on track to exit the recession and the economy will be well again. Economists believe the nation’s GDP growth will recover sooner than expected.

Are you ready to make the most of these favourable market conditions? Contact us on (02) 8814 5275 or at https://www.mirren.com.au/contact/ for a complimentary consultation.