We’ve witnessed in 2021 the most extraordinary year ever in Australian real estate.
Amid lockdowns and other restrictions, prices nationally have increased 25% for houses and 14% for units.
The new year promises to be another growth year, notwithstanding the media’s attempt to construct an imaginary scenario of rising interest rates and falling prices.
There will be notable price growth in 2022 in many markets, led by some of the smaller capital cities and some of the key regional areas.
Multiple factors have driven the current up-cycle and most of them will remain in play in 2022. There will also be new influences putting upward pressure on property prices, including the rollout of major new infrastructure projects, the return of international students and (if borders are open) an influx of overseas migrants.
Investors have only recently joined the real estate party and their growing numbers will create stronger competition for properties.
One of the key factors will be the chronic shortage of rental properties and the likelihood of strongly rising rents.
Get ready for another fascinating year in real estate.