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Highlights
- Property consultant CoreLogic reveals that Sydney home prices saw a rise of AU$1000 each day in 2021.
- The figures indicated that Canberra prices increased by around AU$700 daily.
- In the wake of the Coronavirus pandemic, the primary reason for the increase in housing demand during this period was low-interest rates.
Thanks to the skyrocketing home prices, having your own home at affordable prices seems a distant dream now in Australia. The housing market has been booming in Australia, more so in the past two years. So, here is a word of precaution for those planning to buy a home. The latest revelation by CoreLogic would lead you to ponder over your finances and look upon your savings which you treasured to buy a home in major Australian cities. Marking a year of extraordinary property price growth, the latest data from CoreLogic shows that house prices in Sydney rose 29.6% in 2021, adding approximately AU$1000 each day or an overall of AU$359,616 in 12 months. Likewise, Canberra prices increased by around AU$700 daily.
The other startling revelations for CoreLogic Figures include:
- House prices in Brisbane climbed 30.4% over the year, Melbourne jumped by AU$197,948 at a gain of 17.9%, and Adelaide's prices reached AU$117,326, an increase of 25.8% during the same period.
- Hobart added 26.7%, Darwin gained AU$67,858 or 12.4%, and Perth rose by $62,203 or 13.3 per cent. Nationally, there was an increase of AU$191,505 or 24.5% in the house prices.
- As per the Australian Bureau of Statistics, in the six months to September, the value of the housing stock rose by a trillion dollars to reach AU$9.3 trillion.
One important factor that drove Australian housing prices up 22% last year, making it the highest rise in three decades, is record low-interest rates.
Bottom Line:
Various economists believe that the biggest shock for homebuyers is expected to come in 2023. It is claimed that the Reserve Bank will raise the interest rates next year, making borrowing much more expensive. However, others believe that the rates will rise in 2024.
CoreLogic's research director, Tim Lawless, has noted that a significant mismatch between housing demand and supply is an important reason why housing prices have seen a whopping rise.
Lawless added that the rising prices would be subdued with tighter credit conditions and normalisation of stock levels in 2022. Besides, the surge in omicron cases countrywide is also expected to dent consumer sentiments, possibly slowing down the price growth in the coming months.
