<a href="https://www.apartments.com.au/developers/coronation-property">Coronation Property</a> has received development approval for Archer &amp; Albert, a 32-storey, mixed-use residential development in the heart of Chatswood.

Located at 57–61 Archer Street and 34 Albert Avenue, <a href="https://www.apartments.com.au/new-apartments/archer-albert-chatswood-57-61-archer-street-chatswood-nsw-2067">Archer &amp; Albert</a> will deliver 150 new homes, including affordable housing, alongside ground-floor and podium retail, commercial space, a heritage house activated as a café, additional ground-level activation, and a landscaped publicly accessible park designed for community use.&nbsp;

<a href="https://www.apartments.com.au/new-apartments/archer-albert-chatswood-57-61-archer-street-chatswood-nsw-2067">Archer &amp; Albert</a> is one of the few large-scale residential developments in the heart of Chatswood City to progress through a council-led architectural design competition and secure development approval, positioning it at the forefront of design led housing.&nbsp;

<img alt="Archer" data-entity-type="file" data-entity-uuid="33cb754a-1493-4203-bd16-096d320597f6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A%2BA_C03_EXT_StreetScape_ID1.jpg?VersionId=oLUPFVAMxuRUTH1Bwki16R48cEo.vLeB" />

Designed by global architecture practice <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a>, long-term collaborators of the Coronation team, the project draws inspiration from the Sydney Blue Gum High Forest and the leafy character of the South Chatswood Heritage Conservation Area. The design integrates a restored heritage-listed home and establishes a landscaped connection between Chatswood’s urban centre and its surrounding residential neighbourhoods.&nbsp;

“This is an important project for us and our first entry into the North Shore,” said Joe Nahas, Managing Director of &nbsp;Coronation Property.&nbsp;

“We are deliberate about where we invest and build, <a href="https://www.apartments.com.au/developments/chatswood-nsw-2067">Chatswood</a> stands out because the fundamentals are already strong. Transport, employment, education, retail and health are all in place. Archer &amp; Albert is about adding new housing into a centre that already works and building on what exists.”&nbsp;

<img alt="Chatswood" data-entity-type="file" data-entity-uuid="620fcd78-00be-489b-823a-ca353387b91b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A%2BA_C04_EXT_PARK_HA_ID2.jpg?VersionId=NxSl04Zl1rzt94xlXNA6CNzSR9XMyLgP" />

Aras Labutis, Head of Urban Transformation at <a href="https://www.apartments.com.au/developers/coronation-property">Coronation Property</a>, said the project reflects a disciplined, collaborative approach to city shaping.&nbsp;

“Chatswood sits at an important junction between high-density commercial activity and established residential &nbsp;neighbourhoods," Labutis said.

"Our focus for Archer &amp; Albert was to manage that transition carefully, respecting what’s already there &nbsp;while contributing something new that feels deliberate and enduring."

The approved scheme delivers:&nbsp;

<ul>
	<li>A 32-storey mixed-use tower comprising 150 homes, including 41 affordable housing dwellings • 530sqm of ground-floor retail, dining and commercial offerings&nbsp;</li>
	<li>A 760sqm wellness tenancy integrated within the podium&nbsp;</li>
	<li>A restored heritage building, thoughtfully reimagined as a café overlooking the park&nbsp;</li>
	<li>A landscaped public park, designed as a calm green retreat in the heart of Chatswood&nbsp;</li>
	<li>Resident amenities include a premium gym, golf simulator, mahjong room, dedicated wellness areas, private &nbsp;dining facilities and a curated wine room&nbsp;</li>
	<li>Deep private balconies designed to capture outlooks and northern light&nbsp;</li>
	<li>A refined material palette of natural stone, timber and terracotta&nbsp;</li>
</ul>

[smartcode_project_cta:default project_id=29796]

Joel Robinson

Coronation receives green light for Archer & Albert apartments in Chatswood

Leading Sydney developer <a href="https://www.apartments.com.au/developers/deicorp">Deicorp</a>, in partnership with Metrics Credit Partners, has officially broken ground on its landmark $1.8 billion Kings Bay Village project in <a href="https://www.apartments.com.au/developments/five-dock-nsw-2046">Five Dock</a>, marking the beginning of construction on one of the most significant urban renewal precincts within the Parramatta Road Corridor.

A sod-turning ceremony was held at the project site on Parramatta Road, with NSW Premier Chris Minns and NSW Planning Minister Paul Scully joining Deicorp Chairman Fouad Deiri OAM and Metrics CEO and Managing Partner Andrew Lockhart, to mark the significant milestone.

Located at 129-154 Parramatta Road, <a href="https://www.apartments.com.au/new-apartments/kings-bay-village-five-dock-53-75-queens-road-five-dock-nsw-2046">Kings Bay Village</a> will transform more than three hectares of underutilised land into a highly connected new neighbourhood comprising 1,185 homes, including 218 affordable dwellings for essential workers, alongside new retail, commercial, and community spaces.

[smartcode_project:default project_id=146120 project_image_fid=356895]

Designed by award-winning architects <a href="https://www.apartments.com.au/architects/turner-studio">TURNER</a>, the precinct blends crafted brick architecture with a pedestrian-focused urban layout across six buildings of varying scale. The project will deliver 14,700sqm of retail and commercial space, 6,500sqm of public open space, and a new 2,290sqm landscaped park and civic plaza that will form the social heart of the community.

Kings Bay Village is positioned minutes from the future Five Dock Metro Station, supporting the NSW Government and City of Canada Bay Council’s shared ambition for a more connected, liveable and revitalised Parramatta Road Corridor. Deicorp will also contribute more than $80 million towards new and upgraded local infrastructure, including pedestrian laneways, an activated streetscape and significant public domain works.

Fouad Deiri OAM, Chairman of Deicorp, said Kings Bay Village represents a defining opportunity for Sydney’s Inner West.

&nbsp;“Today marks the beginning of a precinct that will deliver lasting benefits for the Five Dock community - new homes, new open spaces, and a vibrant mixed-use environment that brings people closer to transport, services and amenities,"&nbsp;Deiri says.

“We are proud to be delivering much-needed housing, including affordable homes for essential workers, in partnership with the NSW Government and the City of Canada Bay. Kings Bay Village is urban renewal at its best - thoughtful, connected and community-focused.”

[smartcode_project:default project_id=146120 project_image_fid=356894]

Metrics CEO and Managing Partner Andrew Lockhart said the company is proud to support more housing and infrastructure in a key Sydney corridor. 
&nbsp; 
“Metrics and Deicorp share a proven track record of delivering high-impact projects that align closely with the NSW Government’s housing and infrastructure priorities. Kings Bay Village marks our most significant Sydney development to date, offering quality homes, essential infrastructure, and dynamic public spaces.” 
&nbsp; 
“This project reflects our ongoing commitment to creating value by supporting economic growth, job creation, and delivering excellent outcomes for our investors,” he said.

With Kings Bay Village now underway, Deicorp’s pipeline of apartments under construction across Sydney has increased to 5,102. Kings Bay Village is scheduled for completion in Q2 of 2029.

[smartcode_project_cta:default project_id=146120]

NSW Premier and Planning Minister join Deicorp and Metrics to break ground on $1.8 billion Kings Bay Village precinct

When Antoinette Chan and her architect husband, Peter began casually searching for an investment property, they weren’t expecting it to evolve into a life-changing family decision.

But one visit to the display suite of <a href="https://www.apartments.com.au/developers/abadeen-group">Abadeen</a>’s <a href="https://www.apartments.com.au/buildings/koyo-crows-nest-1-11-rodborough-avenue-crows-nest-nsw-2065">KOYO</a> development in Crows Nest changed everything, and sparked a remarkable story of three generations choosing to live side by side in one of the suburb's most architecturally-striking new developments.

Antoinette, her mother Janet Khoo, and her sister, who is currently living in Singapore, each purchased an apartment in the same building, creating a rare and meaningful multi-generational living arrangement underpinned by modern design, community values, and premium convenience.

[smartcode_project:default project_id=108800 project_image_fid=356083]

“It wasn’t planned,” says Antoinette, who purchased a three-bedroom garden apartment with her husband and teenage daughter. “Peter came across KOYO and encouraged me to visit because he had a lot of respect for Abadeen’s previous work. As soon as we saw it, we knew it wasn’t just an investment, this was a home.”

Shortly after, Antoinette suggested her mother, Janet Khoo, take a look at the same development. A long-time inner-city resident who had recently sold her property in The Rocks, Janet had experienced some health setbacks and was contemplating a move closer to her daughter.

“I walked into the display apartment, and it just felt right,” says Janet. “I didn’t look anywhere else. The space, the simplicity of the design, the light, everything gave me a sense of peace. It’s a new beginning, but it also feels like home.”

[smartcode_project:default project_id=108800 project_image_fid=356093]

In a stroke of serendipity, Janet selected the two-bedroom apartment next door to her daughter, completely unaware of Antoinette’s purchase. Around the same time, Antoinette’s sister, who resides in Singapore, viewed the property via a virtual tour and chose to buy the apartment directly above Janet’s.

“We were all drawn to KOYO individually, and it just happened that our homes ended up vertically stacked, ground, first, and second floor,” Antoinette laughs. “It was a coincidence, but also a sign. This is where we’re meant to be.”

Designed by celebrated architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, KOYO delivered on all fronts for the Chan-Khoo family.

“Our garden apartment gives us the feel of a standalone home but with none of the maintenance,” says Antoinette. “All three bedrooms open onto a generous private garden, which is perfect for our dog Archie, and for entertaining. The open-plan layout and high ceilings make it feel airy, calm and luxurious.”

[smartcode_project:default project_id=108800 project_image_fid=356092]

For Janet, security and accessibility were top priorities, and KOYO offered the ideal balance.

“At my age, I didn’t want to be climbing stairs,” she explains. “The first-floor apartment opens directly to the garden, and the building is small, which gives it a more personal, village-like feel. Yet I’m just steps away from my daughter and granddaughter. That gives me so much peace of mind.”

The family also appreciated the thoughtful amenities that avoided the excesses of some larger developments.

“We didn’t want a complex with too many facilities we wouldn’t use,” explains Antoinette. “KOYO has everything we need, generous storage, secure parking, beautifully landscaped walkways, and a stunning rooftop terrace with BBQ facilities that feels serene rather than busy.”

[smartcode_project:default project_id=108800 project_image_fid=355428]

The location was another critical factor in the family’s decision. Though they had always lived closer to Sydney’s eastern suburbs, Antoinette says the transformation of Crows Nest was a revelation.

“When we returned from living overseas, we discovered Crows Nest had become this vibrant, walkable hub,” she says. “We love being able to stroll to cafés, restaurants, and shops on Willoughby Road. The new Metro makes the commute into the CBD effortless, and our daughter can walk to her school, it’s just next door."

Janet agree. “I was worried about giving up my inner-city lifestyle, but I’ve fallen in love with this area. It has everything I need, supermarkets, quiet streets, friendly faces, and it’s all a short walk away. I feel safe, independent, and connected.”

[smartcode_project:default project_id=108800 project_image_fid=356085]

While design and location were important, the family also credits their decision to Abadeen’s reputation and responsiveness. With decades of experience delivering high-quality residential projects, Abadeen’s track record helped build trust during a volatile market period.

“The waiting game was tough, especially after selling my old apartment,” says Janet. “But the Abadeen team kept me updated every step of the way. They were professional, courteous, and transparent.”

Antoinette said Peter works in property and had already heard of Abadeen. "The quality of their work really impressed us, and as the project neared completion, they went above and beyond to keep us informed and supported. That level of communication is rare.”

Only a handful of three-bedroom residences remain for sale, priced from $3.5 million.

[smartcode_project_cta:default project_id=108800]

Three generations, one address: How a family found sanctuary and connection at Abadeen's KOYO in Crows Nest

Sydney-based developer Gold Partners Australia is making its move on the Gold Coast, launching what is one of the most affordable towers to the booming Broadbeach market.

Its <a href="https://www.apartments.com.au/new-apartments/harmony-on-broadbeach-2797-gold-coast-highway-broadbeach-qld-4218">Harmony on Broadbeach</a> project, just 400m from the beach, has prices starting from $975,000 for its two-bedroom apartments that measure nearly 90 sqm internally.

[smartcode_project:default project_id=113098 project_image_fid=355607]

There will be 113 two- and three-bedroom apartments spread out across the 33-storey tower on the 1,201 sqm site that will front First Avenue. Gold Partners Australia, which has delivered several major projects in Sydney's Norwest and has an active pipeline with projects in Hornsby and Carlingford, secured the block vacant, and want to start preliminary site works early next year through their in-house construction capability.

DBI Architects designed the tower with a four-level podium which will have an open-air swimming pool, sun deck, outdoor lounges, alfresco dining spaces, and a gym with adjoining yoga lawn. A hospitality venue will anchor the building at street level.

[smartcode_project:default project_id=113098 project_image_fid=355611]

Olympus Property Group is selling Harmony on Broadbeach on behalf of Gold Partners Australia. Olympus Director Deanna Lockett says the project is resonating with everyone from locals, investors, those moving from interstate, and second home buyers from Brisbane.

"There's been nothing new come to the market in Broadbeach at this price point for nearly a year," Lockett recalls. "It hits the sweet spot of affordability, good sized apartments, in a great location."

Construction will commence in Q2 2026, and wrap up, all going well, by the end of 2028.

[smartcode_project_cta:default project_id=113098]

Harmony on Broadbeach launches to booming Gold Coast suburb

Display apartments play a crucial role in helping buyers imagine how a space will look and feel once complete.

At <a href="https://www.apartments.com.au/new-apartments/the-albertine-by-mirvac-melbourne-31-queens-lane-melbourne-vic-3004">The Albertine</a> in Melbourne, development giant Mirvac has partnered with furniture maker and retailer MCM House to create a fully furnished, full-scale prototype that showcases the proportions, finishes, and design intent of the project’s three-bedroom residences.

As an added incentive, purchasers of any two- or three-bedroom apartment can receive up to $50,000 worth of MCM House furniture, allowing them to curate their new home with the same craftsmanship, contemporary design, and aesthetic showcased in the display apartment.

<a data-entity-type="file" data-entity-uuid="ae2e947b-2d51-4288-88fa-a35638e3be0f" href="https://www.apartments.com.au/new-apartments/the-albertine-by-mirvac-melbourne-31-queens-lane-melbourne-vic-3004"><img alt="Albertine" data-entity-type="" data-entity-uuid="" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-25%20at%209.27.26%E2%80%AFAM_1.png?VersionId=T5uSwgtTFwd1m5EdQF1inB.tBDgxqbtZ" /></a>

Oversized sofas, solid timber dining tables, and relaxed, low-profile seating demonstrate how the space accommodates real furniture, helping buyers clearly visualise how their new apartment could look, complete with pieces that genuinely suit the scale and design of the home.

The styling is simple but deliberate, with materials that pick up on the apartment’s natural light and neutral tones, creating cohesion without crowding the space.

<a data-entity-type="file" data-entity-uuid="355f10d8-ee75-4546-a42e-4a54abcc806e" href="https://www.apartments.com.au/new-apartments/the-albertine-by-mirvac-melbourne-31-queens-lane-melbourne-vic-3004"><img alt="Albertine" data-entity-type="file" data-entity-uuid="3e0b920b-3f17-47f0-8885-f67697a5f842" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-25%20at%201.17.07%E2%80%AFPM.png?VersionId=tPcmBls5kt_SLqE2ONXrxgk5SnC1xERs" /></a>

Mirvac is now welcoming buyers through the display at The Albertine. Quietly yet conveniently positioned just off St Kilda Road on Queens Road, the development has attracted strong interest from inner-Melbourne and Bayside downsizers, professional couples seeking luxurious low-maintenance living, and design-focused buyers who want proximity to the CBD.

Apartments have been designed by Mirvac's inhouse design team with owner-occupiers at the forefront.&nbsp;The living and dining areas open directly onto a balcony, reinforcing the project’s emphasis on indoor-outdoor flow, while kitchens feature integrated appliances and soft-curve cabinetry which mirror the larger architectural themes at play throughout the building.

<a data-entity-type="file" data-entity-uuid="e8f9b371-17e1-4122-a615-074113096135" href="https://www.apartments.com.au/new-apartments/the-albertine-by-mirvac-melbourne-31-queens-lane-melbourne-vic-3004"><img alt="Albertine" data-entity-type="" data-entity-uuid="" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-11-25%20at%209.30.16%E2%80%AFAM.png?VersionId=NCYvtMavnE1_YDhX6slAr7g84MWP0Ymp" /></a>

The Albertine offers one to four-bedroom residences complemented by exclusive resident-only amenity, including The Circadian Club, a wellness centre with an indoor pool and spa, gym, yoga and Pilates studio, and sauna, as well as The Elysian Room, a private dining space on level 10 with sweeping views across Melbourne.

Mirvac will welcome residents to The Albertine in 2026, having recently celebrated topping out the&nbsp;

<a href="https://www.apartments.com.au/developers/mirvac">Mirvac</a>&nbsp;recently topped out&nbsp; the topping out of The Albertine, with completion expected in 2026.

To find out more about the generous furniture offer with MCM House, enquire below.

[smartcode_project_cta:default project_id=138659]

Mirvac unveils The Albertine display, offering up to $50k in MCM House furniture

2021 Property Forecast

<h2>What&rsquo;s the outlook for the Australian property markets for 2021 and beyond?</h2>

This is a common question people are asking now that our real estate markets are up and running again after virtual auctions and sight unseen purchases took place in 2020.

News from the biggest banks and Australian economic experts are predicting house price growth across almost every segment of the market.

Those I spoke to, and who have released forecasts of their own, are predicting property price growth of 12 per cent per cent - 20 per cent per cent across Australia this year. They expect the trend will almost certainly continue until the end of 2022.

Historically low-interest rates and FOMO (fear of missing out) have driven dwelling prices to record new highs &ndash; but we&rsquo;ve only recently surpassed previous 2017 peaks, which means double-digit price growth is on the horizon for many areas around Australia in 2021.

AMP Capital&#39;s Shane Oliver in particular said, &quot;the forces that have driven average Australian capital city property prices well above trend and well above price-to-income ratios seen in comparable countries over the last two decades may be at, or close to, having finally run their course.&quot;

We&rsquo;ve taken a look at a handful of the state capital property markets, how they&rsquo;ve performed since COVID hit, and what is being forecast to the end of 2021.

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Melbourne Forecast

While Melbourne property prices suffered because of its extended lockdown which severely impacted market activity in 2020, commencing in late October the Melbourne property market has rebounded strongly and is likely to deliver double digit price growth over the next 12 months.

Apartment prices were up just 0.4 per cent in July, contributing to a growth of 1.9 per cent for the quarter and 6.1 per cent in the year to date. The median apartment price in Melbourne is now $612,711.

Dwelling values overall, have increased 11.1 per cent in the past seven months, carried primarily by house price growth of 13.3 per cent in that period.

Property of every type remains in high demand across regional Victoria, especially those with easy access to the capital city with units seeing price growth of 15.7 per cent since January.

Overall, experts forecast property prices will rise roughly 16 per cent by 2021&#39;s end.

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Sydney Forecast

Extremely strong demand for property in Sydney&rsquo;s inner and middle-ring suburbs has led to Sydney house prices seeing double digit price growth, apartments however have taken longer to bounce back from covid.

Apartment prices are up 5.1 per cent over the quarter to be up 10 per cent in the year to date. Of that growth, 1.6 per cent happened in July with similar showings in February and March. Sydney&rsquo;s median unit value is now just over $810,000.

Interestingly enough it is Regional NSW that is seeing the strongest growth in the apartment sector with values shooting up 7 per cent this quarter to be up 14.5 per cent in the year to date.&nbsp;

It is worth noting that the greatest increase in property prices across NSW are seen in the priciest properties and this holds true in both the house and unit markets.

Overall, experts forecast property prices will rise roughly 19 per cent by 2021&#39;s end.

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Brisbane Forecast

Brisbane&rsquo;s house prices remained resilient over 2020 when other markets were impacted by the economic impact of COVID-19.

Now, moving forward, the Sunshine State will shine with strong demand for homes, particularly in lifestyle areas, likely to deliver double digit capital growth over the next 12 months.

Brisbane apartment values have increased 2.7 per cent over the quarter, in line with 6.2 per cent in the year to date.&nbsp;

Median apartment values have hit a high of $419,143.

Several of the economists I spoke to including Terry Ryder and Westpac&#39;s Bill Evans tipped housing prices to surge 20 per cent between 2022 and 2023.&nbsp;

Hotspotting&#39;s Terry Ryder clarified that 89 per cent of suburbs across Brisbane are seeing price growth and was tipping it to become Australia&#39;s property leader in the coming months and years.

It&rsquo;s also worth keeping in mind the Brisbane 2032 Olympics which will positively impact property values now and in the future.

Overall, experts forecast property prices will rise roughly 16 per cent by 2021&#39;s end.

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Canberra Forecast

Canberra&rsquo;s property market has been described by many as a &ldquo;quiet achiever&rdquo; with dwelling values reaching a new peak after growing 14.2 per cent over the last year.

Considering a large percentage of Canberra&#39;s population is employed by the government or industries supporting the public sector, Canberra&rsquo;s property market has not really felt the effects of the coronavirus recession like other capital cities did.

Due primarily to the ongoing apartment developments popping up across Canberra, like those from Geocon, unit values are up 1.3 per cent this month, making up a large chunk of the 2.8 per cent price growth this quarter. Apartment prices are up 6.5 per cent in the year to date.&nbsp;

Median apartment prices are currently $520,900.

Moving forward, the Canberra property market will continue to enjoy solid but slower property price growth, due primarily to slow population growth.

Overall, experts forecast property prices will rise roughly 17 per cent by 2021&#39;s end.

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Perth Forecast

Perth&rsquo;s long-awaited recovery was interrupted midway by COVID-19 but now Perth&rsquo;s housing market is back on a recovery trajectory, with home values posting a 7.5 per cent increase in the year to date.

Perth continues to be the most affordable capital city for houses in the country and this along with a record-low mortgage rate, improving economic conditions and government incentives has set it up for strong price growth this year.

This has also seen strong benefits for the apartment market which has been neck and neck with houses and even outperformed them this quarter, seeing 2.3 per cent growth compared to 1.5 per cent. Units were up 0.6 per cent for July, while houses saw growth of 0.3 per cent.

Apartment values are up 6.8 per cent since January achieving a median price of $404,257.

Overall, experts forecast property prices will rise roughly 19 per cent by 2021&#39;s end.

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<h2>How does my property impact the economy?</h2>

Real estate affects the economy because it makes up a large portion of individual and business wealth across economic sectors.

When real estate prices rise, wealth increases, so individuals and businesses are more likely to borrow and spend.

This can be seen in recent times with the average Australian savings account decreasing ~$7,000 from May to April as prices start to spike, however this can also be largely attributed to a reducing fear of COVID-19

When your home rises in value it increases the overall value of the economy. When real estate prices rise, wealth increases, so individuals and businesses are more likely to borrow and spend.

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<h2>What&rsquo;s causing the rise in home prices?</h2>

The primary factor causing the current boom in home prices are the continuing low mortgage rates and low interest rates.&nbsp;

Plus with Australia&rsquo;s excellent response to Covid 19 transmission seeing business reopening well and an increasing optimism for the economy there is much less fear around COVID-19.

With fewer homes for sale and first time home buyers and owner occupiers (those buying a property to live in it) dominating the market, they are currently the ones driving up property prices the most.&nbsp;

However as incentives like those from the HomeBuilder Grant and First Home Buyer Grant taper off it is expected that we will see a massive uptick in investor spending on property as they compete with owner occupiers and first home buyers over the super competitive interest rates.

It is predicted that Investors will drive the market well into 2022 and perhaps even 2023 depending on other conditions that influence interest rates like the cash rate.

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<h2>How does the Cash Rate influence the Interest Rates on my loan?</h2>

You often hear about it in the news, the monthly changes in the Cash Rate, but what is the cash rate and how does it affect you?

In essence the Cash Rate which the RBA meets on to decide once a month (currently 0.15 per cent) changes how much money banks can lend to you.

So when the cash rate is extremely low - close to zero - as it is currently, banks can and are encouraged to offer lower interest rates.&nbsp;

That means when the Cash Rate is low, Variable and Lock-In Interest Rates are low so your mortgage is cheaper!&nbsp;

This can save you hundreds to thousands of dollars a year depending on the value of your home.&nbsp;

With all that covered, every expert I talked to predicts that the cash rate will not decrease any time in the next 2 years and most experts expect the cash rate to increase in 2023 or later.

However three of the Big 4 banks have already started hiking interest rates across the range with Westpac the only one yet to start showing upward movement. It&#39;s a sign of the times with a number of other banking and loan institutions also increasing interest rates across a wide range of home loans.

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<h2>How does the government affect property prices?</h2>

Legislation is also a factor that can have a sizable impact on property demand and prices.

Tax credits, deductions, and subsidies are some of the ways the government can boost demand for real estate for as long as they are in place.

Some recent examples of this include the HomeBuilder Grant and the First Home Buyers Grant.

Being aware of current government incentives can help you determine changes in supply and demand and who and what will be affecting property prices.

An example of something to look out for is the percentage of properties purchased by FHB&#39;s (First Home Buyers) soaring to record highs recently. Although this still remains the case, it wont forever and certainly is not predicted to last into 2022.

What’s the outlook for the Australian property markets for 2021 and beyond?

jordan_55689

Economic Guide: Forecasting property prices and what affects property in 2021, 2022 and beyond

One of most bemusing factors of modern media is that people with appalling credentials at forecasting things are given a free ride by journalists.

In a sensible world, only credible people would have their forecasts held up before the public as something worthy of attention. In this utopia, journalists would check on the track record of forecasters before publishing their latest predictions.

On that basis, the American doomsday merchant Harry S Dent would never feature in Australia media. Every time he visits, which sadly is often, he forecasts a disastrous collapse in our property prices in the next 12 months.

Nothing like that ever happens but each time he makes this recurring forecast, he gets acres of free publicity. No doubt he will next time as well. The reality is that few journalists care too much if the prediction is outlandish or if the forecaster is someone who invariably gets it wrong.

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The priority is the clickbait headline. Anyone seeking cheap publicity can make a wackadoodle prediction &ndash; prices will fall 40% or young families will never be able to buy a home ever again - safe in the certainty that no one will check later to see how their forecast turned out and hold them to account.

Here are some recent forecasts or observations about real estate matters which received widespread media attention but are doomed to be proven off target:- &ldquo;Missing migrants&rdquo; will &ldquo;choke&rdquo; the housing rebound&rdquo; (The Australian): &ldquo;Weak population growth due to low immigration could drive a slowdown in the housing market&rdquo; (The Courier-Mail): Economists and other non-specialists continue to obsess over the absence of overseas migrants and the view that this should be impacting housing markets. It&rsquo;s very naughty of property markets not to collapse on cue.

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One of the factors they&rsquo;ve overlooked is that returning ex-pats have more than compensated for the lack of overseas migrants buying homes. And when international borders do re-open, I believe there will be an avalanche of migrants heading to Australia, creating a second wave of buyer demand which will prolong the current upcycle.

One of the proponents of the population furphy in recent media coverage is the nation&rsquo;s worst forecaster of real estate outcomes, Shane Oliver of AMP Capital. Keep in mind that 12-15 months ago he was forecasting a collapse in property prices. &ldquo;FHBs will be squeezed out of property market by investors&rdquo; (The Courier-Mail) and many others: Media outlets struggling for a headline can always resort to the hardy annual that young Australians are doomed to a lifetime of renting, with investors the villains of the piece. This has been a recurring theme in Australian media for decades. And yet the past 12 months has been the most prolific period ever for first-time buyers, helped by high levels of government assistance.

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Prices are rising across the nation and somewhat inevitably media has turned this into a crisis because FHBs, allegedly, will never again be able to afford home. Investors, as usual, are the scapegoats

The reality is that this dramatic escalation in prices in the past 6-12 months has been generated by owner-occupier buyers, including FHBs, with investors largely absent. &ldquo;House price growth tipped to slow despite the RBA cash rate call&rdquo; (Smart Property Investor); &ldquo;End of the property boom, experts say&rdquo; (realestate.com.au); &ldquo;68% of experts says prices will peak this year&rdquo; (various media); &ldquo;Is the housing boom about to bust?&rdquo; (The Age) and many others: There appears to be an unofficial competition to be the first the call the end of the boom, with the level of interest rates the prime influence.

When the national average growth in property values was slightly lower in April than in March (according to one research source), &ldquo;experts&rdquo; rushed to declare the end of the boom. But May produced another uplift in the rate of growth. Oops. Then, again, when the rate of national growth in June was less than May, there was another &ldquo;the boom is over&rdquo; chorus. All this was, rather foolishly, based on month-to-month data from one source. Media is very liberal with its use of the word &ldquo;expert&rdquo;.

Finder&rsquo;s regular surveys of &ldquo;experts&rdquo;, which includes the one that found that &ldquo;68% of experts&rdquo; expect prices to peak soon, do not include many people who deserve the title of expert with regards to real estate. Most of them are economists and academics &ndash; there&rsquo;s hardly a genuine expert among them.

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&ldquo;Almost a third predict rate rise over 12 months &ndash; ANZ survey&rdquo; (Mortgage Business); &ldquo;Why interest rates could be set to rise in 2022&rdquo; (Fairfax Media); &ldquo;ANZ tips early rate hike&rdquo; (The Australian) and many others: Media is obsessed with interest rates and there is daily speculation that the official rate will rise.

The Reserve Bank governor Philip Lowe keeps repeating that he doesn&rsquo;t see an interest rate increase before 2024, but &ldquo;experts&rdquo; eager for media mileage persist with their speculation that the cash rate will go up much sooner. Apparently they believe Lowe is lying. I don&rsquo;t believe consumers share journalists&rsquo; fascination with the level of the official interest rate. For them, the day-to-day speculation is pointless and boring.

The implication in much of the coverage is that if the official interest does rise, the property boom will end. This is based on the mistaken belief that &ldquo;record low interest rates&rdquo; have caused the strong market, which is kindergarten analysis delivered by &ldquo;experts&rdquo;. There is also constant speculation about an intervention by APRA, although there is no indication that current lending standards would warrant it.

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&ldquo;Property buyer and developers should be quaking in their boot&rdquo; (AFR): This rather sensationalist article in the increasingly-tabloid Financial Review was based on the notion that &ldquo;sharply rising interest rates and falling population growth&rdquo; would precipitate a crash.

It was also predicated on the theory that we&rsquo;ve had a national property boom for the past 25 years and that FHBs can no longer afford to buy. Much of the rhetoric in the article was based on the thoughts of prolific media commentator&nbsp;Chris Richardson from Deloitte Access Economics, who loves an opportunity to deliver a pithy five-second grab for television and other media. Yes, another &ldquo;expert&rdquo;. This article was sensationalist and lacking in substance, like so much coverage of real estate.

In a sensible world, only credible people would have their forecasts held up before the public as something worthy of attention

terryryder

Don't believe every property forecast you read: Hotspotting's Terry Ryder 

EXPERT INSIGHT

Ahead of the definitive official read of the economy from the treasury in the budget on <a href="https://budget.gov.au/index.htm">Tuesday</a>, the Reserve Bank has given us two special insights into its own thinking in the space of 14 hours.

They suggest that (first) the economy is improving, and (second) the bank is not going to let up on driving that improvement, not for anything &mdash; including concern about climbing home prices &mdash; until it has pushed unemployment down and wage growth back up to where it believes it should be.

The first insight was in Deputy Governor Guy Debelle&rsquo;s <a href="https://www.rba.gov.au/speeches/2021/sp-dg-2021-05-06.html">Shann Memorial Lecture</a> on Thursday night. The second was in Friday&rsquo;s <a href="https://www.rba.gov.au/publications/smp/2021/may/pdf/statement-on-monetary-policy-2021-05.pdf">Statement on Monetary Policy</a>

Growth without inflation

The statement emphasised that the although the bank expects economic growth to bounce back fairly strongly, getting inflation back within the bank&rsquo;s 2-3% target band and getting wages growth up will take much longer

As the statement put it:

&quot;Despite the stronger outlook for output and the labour market, inflation and wages growth are expected to remain low, picking up only gradually.&quot;

On one measure just <a href="https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release">1.1%</a>, the lowest on record, underlying inflation is to climb to 1.5% over the course of 2021 before gradually climbing to close to 2% by mid 2023.

It&rsquo;s well short of the bank&rsquo;s target of 2-3% which is only likely to be achieved with much higher wages growth driven by much deeper inroads into unemployment.\

Those inroads will be easier to achieve if COVID is firmly under control.

The bank explicitly linked its forecasts of an improving economy to an assumption that Australia&rsquo;s vaccine rollout accelerates in the second half of the year. It could have added to that (but didn&rsquo;t) the importance of getting purpose-built quarantine facilities up and running.

Its baseline forecast has economic growth of 4% in the year to June 2022 and 3% in the year to June 2023.

But there is a fairly wide range around its downside and upside scenarios.

Economic growth might be as low as 2.5% or as high as 5% in 2022 and as low as 2% and as high as 3% in 2023.

Similarly, the unemployment forecast is somewhere between 4.25% and 5.25% by June 2022 and in a very wide range of 3.75% and 5.5% by June 2023.

These forecasts produce below-target inflation forecasts of between 1.5% and 2% in June 2022 and 1.5% to 2.25% in June 2023.

What the bank will do to help drive the upside scenario, and what else will need to happen, was laid out by Debelle in Thursday night&rsquo;s <a href="https://www.rba.gov.au/speeches/2021/sp-dg-2021-05-06.html">Shann Memorial Lecture</a>.

The Debelle Doctrine

Adjectives like &ldquo;seminal&rdquo; are bandied about liberally these days, but for me, Debelle&rsquo;s speech on <a href="https://www.rba.gov.au/speeches/2021/sp-dg-2021-05-06.html">Monetary Policy During COVID</a> was a masterpiece.

He began by outlining the suite of measures the bank introduced from the beginning of the pandemic in March 2020. They involved

<ul>
	<li>
	cutting the cash rate to a record low of 0.25% and then cutting it again to 0.1%
	</li>
	<li>
	undertaking to not increase the cash rate target until the bank is confident that inflation will be sustainably within the 2&ndash;3% target band
	</li>
	<li>
	cutting the rate paid on private banks&rsquo; exchange settlement balances with the bank to 0.1% and then to 0.0%
	</li>
	<li>
	buying enough three-year government bonds to target a yield of 0.25%, later <a href="https://theconversation.com/5-ways-the-reserve-bank-is-going-to-bat-for-australia-like-never-before-149311">0.1%</a>
	</li>
	<li>
	guaranteeing to buy $5 billion of five-year and ten-year state and Commonwealth week-in week-out <a href="https://theconversation.com/5-ways-the-reserve-bank-is-going-to-bat-for-australia-like-never-before-149311">whatever the economic circumstances</a>
	</li>
	<li>
	buying bonds as needed to address the &ldquo;dysfunction&rdquo; in the bond market
	</li>
	<li>
	offering banks cheap lending finance through a new <a href="https://www.rba.gov.au/mkt-operations/term-funding-facility/overview.html">term funding facility</a>
	</li>
	<li>
	ensuring that the financial system has sufficient liquidity
	</li>
</ul>

Debelle methodically described how each of these measures are likely to flow through into economic activity.

That is, he articulated what economists call the &ldquo;transmission mechanism&rdquo; &mdash; how the measures work.

And then he delivered the setup for the punchline.

The tools the bank is using might affect all sorts of things, including house prices. But the bank plans to focus on just one thing &mdash; getting unemployment down until it gets inflation back up to its target band.

Then the punchline itself: the bank will do this even if it leads to higher house prices

<blockquote>
there are a number of tools that can be used to address the issue. But I do not think that monetary policy is one of the tools. Monetary policy is focussed on supporting the economic recovery and achieving its goals in terms of employment and inflation
</blockquote>

It was important to remember that while housing prices may not rise as fast without low interest rates, unemployment would definitely be materially higher without low interest rates.

Unemployment has serious consequences.

What it all means

The Debelle Doctrine is that the bank will focus on a narrow range of objectives, and will not be timid about using the tools in its arsenal to achieve them.

This may not be a seismic shift, but it is significant.

It gives the bank a much clearer focus; it gives others a much better way to judge how it is performing; and it makes clear that if the government is concerned about rising house prices, it&rsquo;ll have to do something itself (perhaps by tightening the tax rules governing capital gains and negative gearing).

Debelle produced a clear, precise, and authoritative statement of what the Reserve Bank can, should, and will do.

In a word, it was gubernatorial.<img alt="The Conversation" height="1" src="https://counter.theconversation.com/content/160171/count.gif?distributor=republish-lightbox-basic" u="" width="1" wkje2jqm7="" />

<a href="https://theconversation.com/profiles/richard-holden-118107">Richard Holden</a>, Professor of Economics, <a href="https://theconversation.com/institutions/unsw-1414">UNSW</a>

This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/vital-signs-the-rba-wants-to-cut-unemployment-and-nothing-not-even-soaring-home-prices-will-stand-in-its-way-160171">original article</a>.

The RBA suggest that (first) the economy is improving, and (second) the bank is not going to let up on driving that improvement, not for anything

The RBA wants to cut unemployment, and not even soaring home prices will stand in its way: Richard Holden

Westpac now expect more of their recent 20 percent property price rise forecast to occur in 2021.

Westpac economists Bill Evans and Matthew Hassan kept their forecast for a 20 per cent gain in dwelling price forecasts for 2021 and 2022 but shifted it from thinking it would be evenly spread at 10 per cent gains expected in both years.

&ldquo;We now expect more of this rise to come in 2021, retaining the 20 per cent call overall but with a 15 per cent gain in 2021 slowing to 5 per cent in 2022,&rdquo; they said.

The initial forecast came in mid-February.

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The duo noted Australia&rsquo;s housing market is &quot;evolving quickly.&quot;

&quot;The strong upswing that emerged late last year has seen price growth run well ahead of expectations over the first few months of the year.

&quot;At the current cracking pace, our forecast 10% lift in prices for 2021 set down in February will be achieved by around mid-June.

&quot;Some moderation is likely, particularly as affordability becomes more stretched for owner occupiers.

&quot;However, a sudden loss of momentum near term looks unlikely, particularly with markets tight, price expectations bullish, investor activity showing signs of picking up and highly stimulatory financial conditions still firmly in place.

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&quot;Accordingly, we have marked up our near-term forecast for dwelling prices with a 15% gain now expected nationally in 2021.

&quot;This represents a pull-forward of the cumulative 20% rise we had already been forecasting over 2021 and 2022.

They noted the 20% &lsquo;limit&rsquo; reflects two key views: &quot;that deteriorating affordability will become a more binding constraint for owner occupiers as prices rise; and that regulators will intervene in the market in 2022 as investor activity lifts and credit growth reaches uncomfortable levels.&quot;

Westpac now expect more of their 20 percent rise forecast to occur in 2021

jchancellor

Westpac forecasts even stronger 2021 housing price rise

<html><body>
<h2>OPINION</h2>

Having failed to call the turning point in the housing market, within a matter of just a few short months the expert commentators are out in force to demand cooling measures.

It's almost as if the commentary is continually running 3-6 months behind the reality, since the peak of the buying frenzy may already have passed.

Once there was a time when you'd let supply and demand determine prices, but now there are endless calls for tinkering to constantly fine-tune housing prices and activity in the country's most expensive city. 

Over the past couple of weeks final auction clearance rates have already moved a notch lower, and housing finance figures were down a bit last month too. 

And this weekend, despite a strong preliminary result in Sydney, drizzly Melbourne's preliminary clearance rate was well under 75 per cent, as more sellers bring stock to the market. 

<img alt="" height="404" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/frezny_1.jpg" width="640">

Source: Domain

Something I've noticed over the years is that you'll often get a much better feel for what's going on from listening to mortgage brokers, buyer's agents, or auctioneers (and selling agents when...at least when they aren't in sales mode!), much more so than from analysts and investment bankers poring over historic data from a few months earlier. 

Straight from the auction coalface...

<img alt="" height="513" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/frezny_2.jpg" width="640">

Detached house building approvals have soared to all-time highs this year, so we can expect to see a corresponding uplift in new dwelling supply in H2 2021.

And with the vaccine rollout floundering, there's almost no immigration to soak it up, so this will act as a natural coolant. 

<img alt="" height="371" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/frezny_3.jpg" width="640">

Therefore it won't be a surprise to see the frenzy pass as more vendors look to cash out later in the year, which will almost certainly calm things down. 

PETE WARGENT is the co-founder of AllenWargent property buyers and a best-selling author and blogger 
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Over the past couple of weeks final auction clearance rates have already moved a notch lower, and housing finance figures were down a bit last month too. 

pwargent

Housing buying frenzy may have passed: Pete Wargent

<html><body>
The Reserve Bank has warned there was a risk that low interest rates could lead to "over-exuberence" with asset prices, including in the housing market.

The RBA suggested Australian banks' lending standards remained prudent and that households, businesses and banks were well-placed to deal with any weakening economic conditions.

But the central bank warned of a risk that assets could be pushed beyond their fundamental value.

"A sustained period of rising asset prices may lead to over-exuberance ... with increased risk-taking and leverage in an environment of accommodative financial conditions," it noted in its biannual financial stability review, released on Friday

“A correction in asset prices, if borrowers’ income were to fall and so they defaulted on debt repayments, would expose lenders to large losses on the increased debt, particularly if the quality of that debt had been eroded.”

The review also noted households and businesses that derive their incomes from sectors most heavily affected by the COVID-19 pandemic face an elevated risk of repayment difficulties "if their buffers prove to be insufficient.” 

The RBA said these risks were greatest for leveraged assets, including housing, which thereby meant it was crucial banks did not cut credit standards.

"[In this environment] it is particularly important that there is no excessive risk-taking by the financial sector," the RBA said.

"Even if lenders do not weaken their own settings, increased risk-taking by optimistic borrowers could see a deterioration in the average quality of new lending."

"This would weaken the resilience of businesses and households, and so the financial system, to future shocks," the RBA concluded.
</body></html>

The RBA suggested that Australian banks' lending standards remained prudent

RBA warns on "over exuberance" in home buying

<html><body>
Australian housing prices are set to soar 17 per cent across all the capital cities this year, ANZ economists have forecast.

Sydney and Perth housing prices are forecast to jump 19 per cent in 2021, followed by Hobart which could see an 18 per cent rise.

Melbourne and Brisbane could see 16 per cent growth and Adelaide up 13 per cent, the ANZ research found. 

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ANZ see the first half of 2021 as likely to be stronger than the second half given the end of government programs like JobKeeper and HomeBuilder, and an emerging lift in fixed mortgage rates.

“What we’ve seen is a combination of quite strong demand and relatively low supply,” ANZ senior economist Felicity Emmett told Domain.

Emmett expects the Australian Prudential Regulation Authority (APRA) will introduce macroprudential measures to slow house price growth into 2022.

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Last November ANZ previously forecast a 9 per cent national rise this year when housing prices in Perth were tipped to jump 12 per cent, Brisbane 9.5 per cent and Hobart 9.4 per cent. Sydney prices were expected to rise 8.8 per cent with Melbourne prices lagging with 7.8 per cent growth.

ANZ says the annual price growth will slow to 6 per cent in 2022.

At this time last year it was tipped by ANZ that prices would fall 10.
</body></html>

Australian housing prices are set to soar 17 per cent across all the capital cities this year, ANZ economists have forecast.


ANZ tips strongest real estate price growth for Sydney and Perth

<html><body>Perth’s residential market is tipped to record double digit growth for the first time in more than a decade to lead the nation’s housing recovery in 2021. 

CBRE’s 2021 Australia Real Estate Market Outlook Report predicts Perth’s residential market to be the nation’s front runner.

It tips Perth house prices expected to grow between 9%-12% and unit prices to lift 5%-7% in 2021. 

“A return to positive interstate migration, accompanied by a solid resources sector outlook, is helping propel Perth’s housing market recovery ahead of the nation," CBRE’s head of residential research, Craig Godber, said.

“Supply also remains tight, with vacancy already sub-1% which is leading to strong rental growth and providing attractive opportunities for investment in 2021.” 

CBRE’s latest forecasts show that Brisbane and Sydney’s residential markets are also poised for a rebound in prices in 2021. 

Sydney is expected to see house price growth of between 7%-10%, while units will experience a 0%-3% rise. 

Growth of 7%-10% is forecast for Brisbane’s housing market and units are on track to record a 3%-5% value uplift. 

The report predicts 5%-7% growth for both Adelaide and Canberra’s housing markets, with the former expecting a 3%-5% rise in unit prices and the latter tracking an uplift of 0%-3% for units. 

A longer recovery is forecast for Melbourne, with house prices expected to lift 3%-5% in 2021 but no increases for its unit values. 

</body></html>

The CBRE report shows regional value growth outpaced metropolitan values in all states, except Western Australia, during 2020. 

Perth's residential tipped to be 2021's strongest capital city market

<html><body>
Here’s how you spot a real estate charlatan, someone who likes to present themselves as a real estate expert but who in reality knows nothing worth hearing …

- They speak of Australia as a single property market; and/or

- They attribute price growth to “record low interest rates”

Mostly these pretenders are economists. I would remind you of a much-quoted definition of an economist: Someone who can tell you tomorrow why their predictions yesterday didn’t come true today.

We have learnt over the years, but particularly in 2020, that the bigger the name and the media profile, the worse they are at analysing residential real estate and forecasting outcomes.

Cast your minds back to the predictions in March/April 2020 from senior economists employed by the major banks, big institutions like AMP and even those working for specialist real estate research entities. And then again later in the year when the so-called September Cliff was proclaimed an impending disaster.

There was a chorus of predictions of a long recession, with double-digit unemployment and real estate values collapsing. How spectacularly wrong they were. Only the specialist property analysts got it right.

But the appalling track record of economists with real estate analysis stretches back years and includes the alarmist predictions about property prices in the wake of the GFC – also proven to be spectacularly wrong. 

It’s remarkable that media continues to give these charlatans airplay. Credibility, it seems, is optional, so long as you have “economist” in your title.

So the nation’s gaggle of chattering economists has been compelled to admit they got it wrong in 2020 and most of them are now forecasting big price growth this year. You will note that what they are predicting is already happening, highlighting another characteristic of this bloated and overblown profession: predicting the recent past.

And how do they explain the gathering boom? Record low interest rates!

God help us. The lack of expertise among the talking heads who clutter up the airways with their simplistic analysis is quite breathtaking.

As we all know, we’ve had ultra-low interest rates for years. Very little has changed in that regard to explain the recent uplift in sales activity. When Sydney and Melbourne were having their real estate boom from 2013 to 2017-ish, economists generally explained the price rises with “record low interest rates”. They had no response to the obvious question at the time: how come prices in Perth and Darwin were falling, while Canberra, Brisbane and Adelaide were stagnating?

The “low interest rates = property boom” theory also fails to explain why the last two genuine nationwide property booms, in the late 1980s and in the early years of this century, both occurred during periods of very high and rising interest rates.

My view, strongly, is that record low interest rates do not explain what’s happening in real estate across most of Australia.

The growth is being fueled by multiple factors, including …

- A stronger-than-expected economy

- Lower-than-predicted unemployment

- State and federal stimulus measures

- The build-up of savings during the pandemic period

- People in lockdown reviewing their life choices

- Ultra-low vacancies, putting upward pressures on rents and prices

- Pent-up demand, leading to rising sales activity

- Low listings levels, relative to rising buyer demand

- The Exodus to Affordable Lifestyle trend, which is hugely influential

- Increased spending on major new infrastructure

- The revival of the resources sector

- The return of ex-pat Australians in large numbers

- The belated entry of investors to compete with owner-occupiers

-Perceptions about the safety and solidity of bricks &amp; mortar in times of uncertainty

-The growing prevalence of e-commerce and its impact on industrial property, which has repercussions for residential demand

- Access to low-cost finance

And you’ll notice that I mention low interest rates as just one of 16 different factors – and I mention it last and definitely least.

Terry Ryder is the founder of hotspotting.com.au

ryder@hotspotting.com.au

twitter.com/hotspotting
</body></html>

The nation’s gaggle of chattering economists has been compelled to admit they got it wrong in 2020

Economists got real estate wrong in 2020: Hotspotting's Terry Ryder

<html><body>
A return of investors to the market, coupled with a lack of listings, is tipped to increase property prices throughout Australia in 2021. 
CoreLogic research director Tim Lawless predicts property price increases of between 7 per cent and 10 per cent in 2021, with the smaller capital cities tipped to benefit the most. 
Mr Lawless said Brisbane, Adelaide and Perth were most likely to experience the strongest price growth this year. 
He said Sydney and Melbourne property price growth is not expected to be at the same level and it would be more concentrated in the suburban housing market rather than the inner-city apartment market. 
Mr Lawless said a lack of listings would continue to drive the property market within the next few months. 
“While listings started to lift at the end of 2020, they are still 21 per cent lower than at the same time the previous year,” he said. 
“I think it will remain subdued throughout January and maybe into February. My guess is demand will continue to outweigh supply and that will be one of the recipes for higher prices. Investors will become more active in 2021.” 
His predictions are backed by a national survey done on behalf of Custodian which found 19 per cent of people who already owned an investment property planned to buy in 2021, while 6 per cent of respondents had decided they would buy their first investment property in 2021. 
It found 22 per cent of investors had put off buying an investment property in 2020 because of COVID. 
Mr Lawless said while 2020 had been a volatile year it was more in relation to transaction numbers rather than a drop in property prices. 
“The number of properties selling nationally fell 40 per cent in April, but they did start to lift in the second half of 2020,” he said. 
“Dwelling values were pretty resilient, there were fewer buyers and also fewer sellers. 
“Peak to trough values fell only about two per cent nationally and bounced back quite quickly.”

John Fitzgerald, the chief executive of Custodian, said many people had over-estimated how significantly COVID was going to impact the economy. 
“If the COVID pandemic has shown us anything it is that property can be a safe investment, but you need to be careful about what type of property you invest in,” Mr Fitzgerald said. 
“We recommend investment in land because it appreciates in value. Of course, many investors need to build something on that land to help them pay down their loan, that’s why we recommend building a new house in areas of high population growth and with significant amenity and jobs nodes nearby.” 
Investor numbers were at record lows with only about 24 per cent of mortgage demand coming from investors when normally it would account for a third of loans. 
Mr Lawless said investors were motivated by positive cash flow and growing capital gains and that was why smaller cities such as Adelaide and Brisbane would be the focus of demand this year. 
They were more affordable than Sydney and Melbourne and had not experienced the downwards pressure from weakening rental markets that Melbourne and Sydney had. 
“We will see buyer numbers remaining very high because of low interest rates and confidence, providing we continue to keep COVID under control. What we don’t know is how much stock will be added to market. My guess is it will be not much different from second half of 2020,” Mr Lawless said.
</body></html>

CoreLogic research director Tim Lawless predicts property price increases of between 7 per cent and 10 per cent in 2021

2021 Property Forecast

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