Five capital cities and 40-plus regional locations alike can expect price growth upwards of 10 per cent this year, but the prediction does come with some pretty strong conditions attached.
According to Propertyology’s head of research, Simon Pressley, five of Australia’s eight capital cities could produce double-digit house price growth over the next 12 months.
According to the researcher, Brisbane will see house prices grow by between 10 and 15 per cent.
While a sizeable price increase in itself, it’s smaller than more than 15 per cent house price growth he’s forecasting for Perth, Canberra, Adelaide and Hobart.
Mr Pressley has also predicted prices will boom by more than 20 per cent across at least 40 regional locations.
The forecast – which also predicts Darwin and Sydney to achieve price increases of 5 to 10 per cent – comes in a year that “has the best set of national real estate conditions since the turn of this century”, Mr Pressley expressed.
“All things being equal, Australia has just commenced an era of accelerated rates of home ownership and wealth creation, in a manner not seen since the five years ending 2005,” he said.
He believes “history books will show that an Australian property boom commenced in Q3 2019” that will continue for several years with the exception of “pause” being pressed for Q2 2020.
“In 2021, a location that does not produce double-digit growth will probably be the odd one out,” he flagged, before noting Melbourne as the only capital city expected to see gains of less than 5 per cent.
But, there are three key caveats Propertyology has warned must occur for the above predictions to come to fruition.
- An individual location experiences nothing more severe than a month-long Stage 3 lockdown during 2021.
- Residents are permitted to cross state borders.
- It doesn’t become any more difficult for responsible borrowers to receive credit.