[Australia] National property prices are predicted to rise by up to 9% in 2022, according to REA Group, but which cities are tipped to lead the way in price growth this year? Let’s take a closer look.
National housing values grew a whopping 22.1% in 2021, and while things are expected to slow down throughout 2022, the fun ain’t over yet.
Especially so if you’re a homeowner in Hobart (9% to 12% predicted growth), Brisbane (8% to 11%), Adelaide (6% to 9%) and Canberra (6% to 9%).
“Brisbane and Hobart have the strongest price growth forecasts among the capital cities thanks to their low supply of stock for sale, heightened demand and relatively lower prices compared to Sydney and Melbourne,” explains Cameron Kusher, REA Group’s executive manager of economic research.
Meanwhile, property prices in Perth (3% to 6%), Sydney (4% to 7%), Melbourne (4% to 7%) and Darwin (5% to 8%) are still expected to grow – just not as much.
“Perth has shown a stronger slowdown in price growth already relative to other capital cities, while the more expensive property prices in Sydney and Melbourne may increasingly see demand shift to more affordable housing markets,” adds Mr Kusher.
2022 Dwelling price forecasts
Here’s the predicted price growth for 2022 for each capital city, broken down for you in a nice and easy format:
Sydney: 4% to 7%
Melbourne: 4% to 7%
Brisbane: 8% to 11%
Adelaide: 6% to 9%
Perth: 3% to 6%
Hobart: 9% to 12%
Darwin: 5% to 8%
Canberra: 6% to 9%
All capital cities combined: 6% to 9%
So why are property prices expected to slow down throughout 2022?
For starters, it’s because buyers can expect more choice in 2022.
Buyer demand peaked in August 2021, according to REA Group’s PropTrack data, and a more balanced market is expected in 2022.
For vendors, this means that they may have to lower their price expectations, warns Mr Kusher, and the increase in housing stock, should it continue, will likely contribute to a slowing of price growth in 2022.
“The recent lift in new listings should go some way to allow more buyers to find a home,” adds Mr Kusher.
“After that, the question will be … How large is the next wave of buyers? We believe this next wave is likely to be big, but not as large as the current one, so that should result in a better supply and demand balance.”
“We expect a smaller wave of buyers because prices have increased, rapidly pricing some buyers out.”
Check your suburb out:
Suburb Report Card (desktop version, mobile-friendly link).
What the PropTrack interactive tool can show you
Ok, so the two main functions of the PropTrack tool are the ability to select “suburb” and “property type”, which is broken up into houses or units.
Also worth noting is that you can see how much change in demand there was for your suburb and property type, and even how many “highly engaged buyers” there were throughout 2021.
Other important insights you can check out include “average estimated value”, “average weekly rental value”, “rental yield” and “median days on market”.
How does your suburb compare to your state’s best suburbs?
While using the tool, you can immediately see how your suburb compares to its immediate neighbouring suburbs.
But if you also want to see how your suburb stacked up against your state’s best, you can do so via the below direct links.
Just click the > button at the bottom (or top) of each linked page to scroll between the national and state tables.
– Suburbs with largest growth in average estimated house value.
– Suburbs with largest growth in average estimated unit value.
– Suburbs that were most in-demand in 2021.
– Suburbs with largest growth in demand in 2021.
– Suburbs with shortest median days on market in 2021.
Planning on making your move in 2022?
With house prices having just experienced their fastest pace of growth since 2004, it’s as important as ever to find a finance option that’s right for you.
This is especially true as the finance market is starting to go through a shift, with more and more economists predicting the RBA will increase the official cash rate this year.
So if you’re a keen homebuyer who wants to explore what options are available to you – whether that be upgrading your home or buying an investment property – get in touch today to discuss your borrowing capacity. We’d love to run through it with you.
Need help to finance your 2022 purchase?
As property prices are tipped to continue rising throughout 2022, it’s never been more important to have a broker like us in your corner when it comes to securing your next property purchase – be that your dream home or adding to your investment portfolio.
In the current market, it’s also important to know your borrowing capacity before you start house hunting, so you don’t stretch yourself beyond your limits.
If you’d like to find out what you can borrow – get in touch today. We’d love to sit down with you and help you map out a plan for your 2022 finance and property goals.
Article Supplied by Scott Heathwood of https://www.wealthyandwise.com.au
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