Top property market trends in Australia 2022

With Sydney, Melbourne, Brisbane and Perth all seeing a rise in property prices in 2021, what will the property market trends be like in 2022? Australian property market forecast for 2022

Top property market trends and forecast for Australian real-estate market 2022

In this era of uncertainty, we take a look back at the housing market trends that impacted the second half of 2021, as well as the major aspects to watch in the first half of this year.

The property market in Australia is expected to grow by 3.8% in 2022, according to the latest research from CoreLogic. The growth will be driven by increased demand for properties, as well as a relatively stable supply of new properties and predicted house prices by 2030 Melbourne can go way higher. The research also found that the Sydney and Melbourne markets are expected to grow at a faster pace than the rest of the country, with prices expected to rise by 3.9% and 4.1% respectively over the next three years. The report also found that there is an increasing number of people looking for rental accommodation in Sydney and Melbourne, with rental vacancies declining by 0.5% and 0.3% respectively over the past year alone

Most observers were astonished by the surge in property prices during the pandemic, but can price strength hold in the midst of inflation?

Due to the ongoing effects of COVID-19, as well as related disruptions to global supply chains, loosening of monetary policy by central banks around the world, and more lately, war in Eastern Europe, the Australian property market remains unstable.

Technology and property trends in 2021

In the second half of 2021, technology was at the forefront of important trends due to heavy lockdown restrictions reinstated in major cities across eastern Australia, including Sydney, Melbourne, and Canberra.

Despite the lockout that damaged other areas of the economy, the property market managed to function properly.

This was accomplished via the use of high-tech approaches such as remote inspection and online auctions.

Housing shortages caused by border restrictions and lockdowns.

Internal migration by Australian residents was slowed by COVID-19-related travel restrictions and lockdowns, while immigrants were kept out while international borders remained closed.

As a result, there was a shortage of rental and sales listings, which contributed to additional increases in property prices.

Sydney, Melbourne, and Canberra started to restore some normal economic activity since the Lockdown measures were lifted by the end of 2021.

Melbourne Airport saw its first foreign passenger flight since March 2020 in November last year, with journeys to and from Singapore.

With the restart of international travel, a major source of real estate demand in the shape of new migrants and foreign investors returns to Australia.

Lockdown restrictions and its effect on housing prices.

The real estate industry's use of high-tech tactics to deal with lockdowns aided sales and continued price growth.

According to Corelogic data, the value of a home in Sydney increased by 25.23 percent in October compared to the same period previous year.

Important property market trends to watch in the first half of 2022

Important Property market Trends to Watch in the First Half of 2022

Interest rate hikes are under increasing pressure.

Reserve Bank Governor Philip Lowe stated at the beginning of February that there is no urgent need to raise the cash target rate from its record low of 0.1 percent.

Although Lowe stated that a sustained higher trend in real wages was required to justify interest rate hikes, many analysts believe that increasing inflation will force the RBA's hand before the end of the year. Low interest rates, on the other hand, will provide solid support for price levels in the Australian home market. By the end of the year, we expect the official cash rate to rise to 0.75 percent.

The economy is still in good health.

Despite the long-term impacts of the COVID-19 epidemic, Australia's GDP is anticipated to grow by 4.1 percent in 2022, according to the OECD.

Employment levels are among the highest on record, and business and consumer confidence are high, however any hint of out-of-control inflation might lead confidence to plummet dramatically. The unemployment rate had plummeted to a 50-year low of 4%, according to government data released in mid-March.

Rental demand could skyrocket in Australia

Following the restart of international travel, there is the potential for increased upward demand on home rents, and we welcome the return of foreign students and new migrants after a two-year absence.

The sudden spike in demand could put even more upward demand on rental rates for both houses and apartments.

Price increases are expected to rise, but at a slower rate.

Housing prices will continue to rise until 2022, but at a slower rate than during the post-COVID-19 price boom, which saw price increases of more than 20% in key cities.

Instead, market consensus predicts a full-year increase in average national house prices of 5 to 7% in 2022.

Australian residents are once again migrating within the country.

Existing Australian residents will be able to resume internal migration once the lockdowns and border restrictions are lifted. This will create fresh supply in areas where residents are leaving, as well as new demand in areas where internal migration is most appealing.

data of change in dwelling values in australia corelogic

The best-performing real estate markets will vary.

Following a boom that has resulted in decreasing affordability, the concentration of significant price rise is anticipated to shift away from Australia's two largest cities, Sydney and Melbourne. Given its desirability as a location for interstate migration, Hobart is likely to be the capital city with the fastest growth.

Top rental performing suburbs in Australia

More APRA measures are anticipated to be implemented.

If concerns about house affordability grow, or if a rising property market is seen as a threat to financial stability, APRA is likely to step in again.

The outcome of the federal election could have a significant impact on property policy.

The Federal election is scheduled for May, and a change of administration in Australia is expected to have a significant impact on the housing market.

Labor has pledged to limit negative gearing for newly constructed houses, as well as reducing the capital gains tax deduction on investment properties held for more than a year to 25% from 50%. Labor has been rumoured to be dropping these measures in recent weeks, but no formal statement has been made and may not happen until after the election.

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