Pressley, Propertyology’s head of research, predicts that five out of eight Australian capital cities will produce double-digit house price growth in the coming year. He says 2021 heralds “the best set” of real estate conditions seen in almost 20 years.
“Australia has just commenced an era of accelerated rates of home ownership and wealth creation, in a manner not seen since the five years ending 2005,” Pressley says.
He says these conditions include low housing supply, improved availability of credit and low interest rates. They will wash away the negative impacts of the pandemic, as potential buyers who have hoarded deposits through the worst of the pandemic prepare to spend.
Pressley says forecasts based on low population growth – due to international borders being shut – do not produce accurate estimates of future property price performance.
“To be completely frank, banks and economists have never had an intimate understanding of the mechanics of property markets,” he says. “They proved that again with enormous doomsday forecasts when the germ arrived on Australian shores early in 2020.”