Australia’s property market is set for a big year with price growth to accelerate sharply, according to a leading economist who predicts the number of $3 million suburbs will again double.
Releasing the REA Insights Property Outlook Report 2021, realestate.com.au chief economist Nerida Conisbee said 2021 is looking like a bumper year for price growth as positive momentum continues.
“Property’s back and it will be a boom year in 2021,” Ms Conisbee said.
Ms Conisbee predicted there will be a sharp acceleration in pricing driven by record savings rates and cheap and easy finance.
“The Australian economy is no longer in recession, a vaccine is now available, interest rates are at record lows and access to finance continues to ease,” Ms Conisbee said.
“There has been an incredible lift in the household savings rate and there’s also been an incredible lift in household wealth.
All of those factors are combining for a really massive year.”
The Australian property market is set for a boom year. Getty
Ms Conisbee noted that conditions started to look quite strong after November, particularly as Victoria came out of its extended lockdown.
There were fears that prices could plummet during the coronavirus pandemic and recession, but despite some initial periods of price decline in some markets, house and unit prices mostly rose across Australia during 2020.https://flo.uri.sh/visualisation/5325920/embed?auto=1
Property prices also grew in the majority of Australian suburbs in 2020.
A number of economists have forecast strong growth in prices over the next two years. Westpac economists on Monday said the housing market is moving into a sustained boom, predicting dwelling prices will rise by 20% in total over 2021 and 2022.
The next $3 million suburb contenders
The luxury residential market enjoyed particularly strong conditions in 2020, as people saved more and total household wealth hit a record high.
The Property Outlook Report noted that towards the end of 2020, views per listing on realestate.com.au for homes priced over $10 million had increased by 150% compared to before the pandemic.
Megan Neil
