Many Australian expats and residents have been turning to property as a popular investment choice over the last 6 months, and demand for Australian property is expected to remain strong. With interest rates at record lows, property listings remaining low, and limited ability to spend on travel, most are expecting property prices to increase throughout 2021 and beyond.
This week we take a look at what the experts are predicting for Australian property prices in 2021.
The analysts at ANZ are expecting property prices to increase in all capital cities throughout 2021 with Perth tipped to lead the pack with an increase of 12% this year. This is to be followed by Brisbane and Hobart with an increase of approximately 9%. ANZ is tipping that Adelaide will be the weakest market with growth expectations of 6% for the year.
AMP’s chief economist, Shane Oliver, is expecting that house prices nationally will rise by 5% throughout 2021, however, has warned that inner-city prices in Melbourne’s CBD could decline by as much as 5%. AMP is expecting that Brisbane and Perth will lead the way this year rising 10% each this year.
Westpac’s chief economist, Bill Evans, advised that the bank is expecting growth of 4% for house prices across the country in 2021. He’s also advised that they are expecting declines of up to 10% for inner-city high-rise apartments. Westpac is also expecting that Brisbane and Perth will be the market leaders this year each rising 8%, while Melbourne and Sydney are expected to grow by just 2 and 3% in 2021.
Commonwealth Bank of Australia
CBA’s head of Australian economics, Gareth Aird, has advised that they’re expecting property prices to surge throughout 2021, with Perth expected to lead the way and see the strongest growth in 2021. He has also advised that they expect Melbourne to be the softest market this year, largely due to the lockdown measures.
The team of analysts at UBS are expecting growth across Australia of 5 – 10% for 2021. UBS had originally forecast a worst-case scenario of a 20% decline in their original guidance in March 2020.
HSBC’s chief economist, Paul Bloxham, has advised that they expect a 4 – 6% increase in Australian property prices for 2021. HSBC expects more modest growth than the other institutions, with a target of 2 – 6% growth in Sydney, 1 – 5% growth in Melbourne, and 3 – 5% in Brisbane.
One of the leading Australian property research houses, SQM, has advised that they expect Australian property prices to increase between 5 – 9% this year, with Perth leading the way at 8 – 12% for 2021. SQM expects that Sydney will land in second place at 7 – 11%, while Adelaide is forecast to grow by 6 – 10%.
Across most research groups we’re expecting to see reasonable growth for Australian property owners this year, and expect that we’ll continue to see strong demand.
LoanSuite Pty Ltd is your lending partner for all of your home loan, investment property, business, and commercial financing needs. With our wide range of lending solutions, expertise in financial planning and investment strategies, and extensive experience in working with both Australian residents and Australian expats, we are your partners for your lending needs.
Book an obligation-free, complimentary consultation here today.
LoanSuite Pty Ltd is an Authorised Credit Representative (Credit Representative Number – 494608) of My Local Broker (Australian Credit License – 481374). Important Disclaimer: Your complete financial situation will need to be assessed before acceptance of any proposal or product.