PHOTO: ANZ
A combination of strong demand and cheap credit will continue to drive the housing market in 2021, with economists now predicting the major cities will grow by as much as 17 per cent, new research has revealed.
The latest ANZ economic insight has revealed that the impact of low interest rates on housing has more than offset rising unemployment levels and low population growth.
According to ANZ’s senior economist, Felicity Emmett, house prices in Sydney and Perth are predicted to jump by 19 per cent each in 2021, followed by Hobart, which is predicted to rise by 18 per cent.
Melbourne and Brisbane are tipped to grow by 16 per cent each, with Adelaide lagging behind with 13 per cent growth in 2021.
The economist noted that owner-occupiers are driving the market, with new housing loans up 80 per cent since the lull experienced in May last year.
“Buyers are taking advantage of historically low interest rates, particularly fixed rates, as well as various government support programs,” she said.
“First home buyers are also benefiting from government support in the form of first home owner grants and reduced stamp duty.”
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