PHOTO: EG Advisory managing director Shane Geha says there may not be any housing bubble to pop
Frustrated house hunters holding out for a property bubble to burst could be waiting a long time, according to an industry insider who warns there is no price balloon to pop.
In fact, not only will there be no crash on the horizon, according to EG Advisory managing director and urban planner Shane Geha, he said already soaring real estate prices will continue to rise across most Australian markets before they slow down.
“Four months into the pandemic last year and most serious economists were saying that this year would see a recession and that property prices would collapse. I was one of the few predicting that property would actually go up by 30 per cent,” he said.
Nationally, dwelling prices have increased by more than 20 per cent in the past 12 months. CoreLogic’s September national home value index rose another 1.5 per cent, taking Australian housing values 20.3 per cent higher over the year.
That pace of annual growth is now the fasted rise since the year ending June 1989. But dwelling values won’t stop there, said Dr Geha.
“The property market in Sydney in particular, and perhaps also in the other capital cities, will do another 10 per cent before the end of the year. So, you’ll actually end up with a 30 per cent plus year and none of those prices are going to regress based on the fundamentals that I see,” he explained.
Aussie property is so hot right now.
Australia is just so hot right now
One of those key fundamentals is the fact that Australia is just so desirable, Dr Geha said.
“Our capital cities; Sydney, Melbourne, Brisbane, Adelaide and Perth are probably among the nicest places in the world to live – that’s the truth, but everyone forgets that.
And given that the bulk of Australia’s population lives in just six major cities, Dr Geha explained that those centres will continue to have solid price growth – at least in the short term.
“The second fundamental I see is that, even with the locked borders, expats are coming back with millions of dollars and either thinking ‘Let me settle in Australia, or invest in Australia’. Plus they’ve all been happy to pay over the odds because they’ve got cash,” he said
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