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Highlights
- Australia and New Zealand Banking Group Limited has projected that the housing prices would increase up to 20% in Australia.
- In Canberra, Sydney and Hobart, Brisbane and Melbourne, the property prices would increase by 24%, 23%, 21% and 20%, respectively.
- The increase in the property prices would be above projected property market rides due to lockdown extension in Victoria and New South Wales.
In another positive news for homeowners looking to sell their property, Australia and New Zealand Banking Group Limited (ASX:ANZ), one of the top four banks in Australia, has projected that the housing prices will zoom up by a further 20% in 2021.
A better-than-expected housing market drives the increase in the forecast despite the lockdown extensions in Victoria and New South Wales.
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As per the bank's latest forecast, property prices are likely to increase 24% in Canberra, 23% in Sydney and Hobart, 21% in Brisbane and 20% in Melbourne.
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What are the property trends one could see in 2022 and beyond?
The property market has shown strong resilience despite the extended lockdowns. As a result, experts believe that we could witness the following trends in the next couple of years.
Property demand may go up
ANZ Bank expects that the housing prices in Sydney would increase over the upcoming two years. However, the pace would be slow.
Presently, property prices are moving up around Australia. Auction clearance rates are high, and there is a buzz related to the property boom. Also, the financial approvals in the country are one of the factors why Aussies are looking for property and will have ongoing solid demand from owner-occupiers and investors in the upcoming six months.
The lower borrowing cost and the reassurance that the interest rate won't go up for several years may also increase the demand throughout the year.
Property Investors might re-enter the market
In the first half of 2021, many first-time homebuyers in the market were offered various incentives. However, in the second half of 2021, their demand is fading, and property investors might enter the market and property value increases.
Housing prices might go up further
The ongoing strength of the property prices, improved auction clearance rate are some factors that will support the increase in housing prices.
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People would be ready to pay premium charges to settle in a better neighbourhood
The coronavirus pandemic has taught people how to live and perform the job in the new COVID normal. People now look for places that make their life easy, reduce the travel time and many more.
People would seek upgradation in their lifestyle
The existing property and economic environment and the impact of COVID-19 lockdowns on people's lives have made them think about upgrading their lifestyles.
Several people living in relatively small apartments are now looking to improve their accommodation, with the oversupply in the property market likely to simplify their search.
Besides, people could save considerable amounts during the pandemic and are now looking to profit from the available incentives and buy their first home.
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