Are the property prices rising in Australia?
However, the property prices have no intention to slow down despite the sequence of lockdowns.
Australia is facing double-digit growth this year, even the growth rate of property prices is slowing, but property prices are kept on rising in almost every state around the country. But now it is showing ease in momentum since peaking march.
Due to uncertainty of the effect of lockdown, the sellers are holding back their properties and hesitant to put their property in the market for sale despite the strong selling conditions.
Here’s what Westpac believes will happen to property values.
Here as you can see, they are predicting a rise of 12 to 14 % this year and it will reduce to 6-8% in the following years as the housing market will get oversupply due to closed borders and stagnant population growth. And that would be a thew time where sellers have no choice rather than reduce the selling price as the market will enter buyer’s market.
What is the property market doing in Adelaide?
If you see the best performing market in Adelaide, the top tier 25% of the market enjoys a 6.8% increase in the home values, and the middle 50% enjoy 4.8% and the lowest 25% enjoy a 3.5% rise in home value.
According to Chief Australia economist for BIS Oxford Economics Dr. Hunter said, “Households have built-up significant excess savings, and the preference towards detached houses has continued. Coupled with this, the supply of properties to the market remains relatively low, resulting in demand outstripping supply.”
Because of the increase in the price and going beyond the reach, many of the first home buyers are facing affordability and losing up in the market.