The Australian property market continues to perform well, and those that are looking to buy either their own home or investment property will know first-hand just how quickly properties are being snapped up on the market, often for well above their listing price.
In conjunction with one of the leading research houses, BIS Oxford Economics, QBE has just released their 20th edition of the Australian Housing Outlook report exploring the outlook for 2021 to 2024. We have summarised both the key outlook figures for each of the Australian states and territories, as well as highlighted some of the other key takeaways from the report.
The first key takeaway from the report was to highlight that even though we have seen challenging times globally due to Covid-19, the property prices in most states and territories have remained remarkably resilient and performed very strongly. New South Wales (NSW), Tasmania (TAS), and Western Australia (WA) were highlighted as three of the key standouts from the data.
The second key finding from the report was the restrictions in population growth created by Australia’s strict border controls, particularly in states such as WA and Queensland (QLD). The usual outflow of Australians seeking to become expats in search of opportunities overseas, and the normally very strong immigration into Australia from Asia and the rest of the world to take up jobs across a wide range of industries, have largely been restricted. We’re sure that these trends will resume as borders re-open, however it’s currently unclear exactly when this will start to take place.
Finally, as will come as a surprise to very few, is that the trend for many Australians moving out of the city and into regional areas given the working flexibility currently on offer has been evidenced in the housing data. We expect that as working from the office starts to return as the ‘normal’ mode of operation, that this will gradually start to shift, however, we certainly don’t expect it to stop altogether.
In the two tables below, you will note the forecast growth rates for each of the Australian states and territories, which are still suggesting strong growth ahead over the next 3 years. Canberra is expected to see growth over the next 3 years of 26.4%, Perth at 21.3%, and despite very strong recent growth in both Sydney and Melbourne, both are still expected to see a 19.1% and 16.1% growth through to 2024.
Houses vs Units
It is always interesting to note the differences in the forecast growth rates for both houses and units, which BIS Oxford has broken down into the data below:
It is very clear that most markets are expecting to perform well over the medium term, and we’re expecting that median house prices in most capital cities and territories will rise over time. As more and, more are looking to enter the property market, and with interest rates being at record low levels, we’d certainly encourage people to do their homework before any purchase in ensuring that they can afford the repayments both at today’s interest rates and at higher levels.
If you’re looking to get into the property market, or just want to discuss the findings of the report, please feel free to reach out to our team at the link below.
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