Aussie Property boom

PHOTO: Melbourne, Australia. GETTY

Five out of 8 Australian capital cities are likely to produce double-digit house price growth in the 2021 calendar year while forty (40) or more non-capital city locations will crack 20 percent capital growth over this 12-month block according to Propertyology’s Simon Pressley.

Pressley says the history books will show that an Australian property boom commenced in Q3 2019 and, with the exception of ‘pause’ being pressed for Q2 2020, it continued for a few years.

“All things being equal, Australia has just commenced an era of accelerated rates of homeownership and wealth creation, in a manner not seen since the 5-years ending 2005,” says Mr Pressley.

As originally forecast by Propertyology prior to lockdown in late-March, buyer activity strengthened as soon as people were permitted out of their Covid-cocoons.

“The widespread property boom that we are predicting is consistent with Propertyology’s commentary throughout the last 12-months.

“In addition to always disagreeing with the forecasts of doom, Propertyology is the only firm in Australia that has maintained a boom forecast throughout the unprecedented year that 2020 was,” said Mr Pressley.

Propertyology’s Predictions For 2021

  1. Greater than 10 per cent rent growth: predominantly in non-capital city locations (lots of them)
  2. Greater than 20 per cent house price growth: more than 40x regional locations
  3. Greater than 15 per cent house price growth: Perth, Canberra, Adelaide and Hobart
  4. 10 to 15 per cent house price growth: Brisbane
  5. 5 to 10 per cent house price growth: Darwin and Sydney
  6. Less than 5 per cent house price growth: Melbourne (a solid Q1 2021, then softening)
  7. Problematic: Apartment values in every major city (excluding Hobart)
  8. Vulnerable: Melbourne and Sydney have several challenges [refer here]

These predictions are caveated by three assumptions

  • an individual location experiences nothing more severe than a 1-month Stage 3 lockdown during 2021,
  • that residents are permitted to cross state borders
  • that it doesn’t become any harder for responsible borrowers to acquire credit.

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