The Australian property market is projected to have a lower year of price growth in 2022, compared to the unprecedented 2021 calendar year.
Housing prices were forecasted by Westpac and ANZ recently, with estimates reaching above 20 per cent dwelling price growth by the end of the 2021 calendar year.
While market growth is predicted along the eastern seaboard major cities, prices aren’t predicted to grow above 10 per cent by 2022-end.
Notably, the property boom has been in full-swing since October 2020 and had previously remained relatively stagnant year-on-year since 2017. Therefore, over a five-year period, Australia is only seeing about four per cent per annum growth.
As expected from auction rates recently spiking due to eased restrictions in New South Wales and Victoria, experts are predicting a strong finish for the housing market in 2021.
As for 2022, it is predicted that the property market will return to a relatively normal growth percentage.
They cited the majority of that prediction growth to come in the front-end of the new year before moderating out.
According to Westpac Economics, Corelogic, dwelling prices in Sydney are forecasted for about six per cent, Melbourne is forecasted for eight per cent and Brisbane for about 10 per cent.
In October, Westpac outlined in a report that the lockdown reopening will affect the remainder of the year and first half of 2022.
“A further three per cent gain over the last two months of the year is likely, bringing the cumulative rise to 22 per cent for the full year,” the report said.
“This strong momentum will carry into 2022. However, the pace of gains is expected to slow, levelling out over the course of next year before moving into a correction phase in 2023.”
For more property-market updates, conveyancing news, CPD opportunities and more, subscribe to the complimentary The Conveyancer Digest monthly Newsletter, today.