How is Australia Property Market moving towards 2021?
New year, New market.. Let’s see how can we nurture the most of 2021 for your property
As we all know, how we spent our year 2020 amidst the pandemic and the crisis and a lot of other uncertainties. In short it has taught us to expect the unexpected. Initially when there was first lockdown in Australia, it convinced the analysts of this market to forecast double digit dip in the property or housing market but unfortunately those all got failed. It was not more than 0.7% below pre-pandemic levels.
When some experts were asked about 2021, how could it go? Seriously none of them were able to answer this question well or none of them were able to provide any figure. However their experience was an amazing insights with some good points to be noted such as –
Regions will grow
Dr Sarah Hunter, a BIS Oxford Economics chief economist said, if local coronavirus cases remained under control and unemployment remained stable, regional areas and detached houses in smaller capitals should continue to streak ahead.
She also added there was still plenty of residual demand from buyers capitalising on buyer’s grants and stamp duty concessions, while fighting a sense of FOMO.
“Falling interest rates improved affordability which helped demand, but supply hasn’t responded all that much yet as the volume of transactions – although they are turning – have not risen anywhere near as much,” Dr Hunter told The New Daily earlier this month.
Role struggling investors
Anna porter, Surbanite director shared her views that prices could rise for off the plan units, but prices of high rise apartments may fall down. The reason for the same is because investors are largly wary about health of rental market and not likely to move for the purchase as demand from international students are not rising which is consequently dragging down the price and demand as well.