The coronavirus pandemic has been a huge blow in the world today and many real estate investors have been looking for properties they can invest in without the fear of losing funds. So, they are in search of forecasts and predictions in the real estate market to know if the market is progressing or declining.
Let see the current property market before knowing what lies in state for the Australian market.
The property market of Australia looked bright at the start of the year until the COVID-19. This led to a predicted fall in property value from 10, 15, and even 20 percent.
In Melbourne, there was more impact in the property market during the lockdown, causing the housing market to experience a lower housing market of 5.6 percent. However, this drop didn’t affect the entire Melbourne region as some areas’ suburbs still have their prices.
In Sydney, the value of property reduced to 2.9 percent in the space of 6 months around April and September 2020. However, we have some facts indicating that 2021 will be a good year for real estate investors as there has been an increase in both consumer and business confidence.
The Australian Economy Is Increasing Quickly
There is an increase of buyers and sellers in the market which also means more transactions.
Australia still has other factors that will make the property market more profitable in 2021 and 2022.
The ANZ Bank economist forecasted the housing price of Australia to reduce by 10 percent from its peak. However, the team presumes the result is quite negative instead, they are predicting an increased price of about 9 percent in the capital cities of Australia in 2021.
Although there are lots of challenges facing the Australian property market and economy. There are other positive results in the property market, especially in the long term. The property market has gained a lot of advantage as the government puts support on the tenants and mortgage holders. The RBA and banks are also playing a huge role in the Australian housing market.
In 2021, the Australian market will be experiencing the following:
Increasing Demand For Property By Home Buyers
Despite the COVID-19 incidence, there has been a record level indicating that there will be an increasing level of housing demands. Also, the interest in purchasing housing properties has increased.
Eliminate First Time Home Buyers
There has been the presence of first time home buyers, because of the numerous incentives and complimentary benefits offered to them. But with the rise in property value, there is a possibility of first-time home buyers fading away due to increased competition.
A Continuous Increase In Property Price
Overall, the property price in the Australian market will greatly increase throughout 2021. Nonetheless, areas like cities with apartment towers, and university areas will continue to suffer because of the lack of secondary properties.
On the other hand, the rental market will experience challenges, especially inner-city apartments that rely on tourists, students, etc.