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2022 Market: Prices Show No Signs of Slowing in Some Regions

2022 Market: Prices Show No Signs of Slowing in Some Regions

Last year, Australia saw a 22.1% growth in national housing value. While this seems a significant national improvement, two cities and one Australian region kept their housing prices at a stalemate.

As 2022 kicks off, let’s take a walk back memory lane and see how Australia’s property market performed the past year. We’ll also take these historical data as insights into what we can look forward to over the next few months.

A property market study reveals a general decline in property price growth. The latest statistics show the following regions and their corresponding price changes as of December 2021:

  • Hobart: +1%
  • Canberra: +0.9%
  • Darwin: 0.6%
  • Perth: +0.4%
  • Sydney: +0.3%
  • Melbourne: -0.1%

However, a few regions and cities have defied the price slowdowns. They are yet to show any signs of following suit with other areas.

  • Queensland: 2.4%
  • Adelaide: 2.6%
  • Brisbane: 2.9%

Why Are Prices Slowing Down in Many Regions?

Australia’s two largest cities, Sydney and Melbourne, had a stellar record in annual housing price gain in 2021. But this was a sharp decline from 2020.

The decrease in momentum is partly due to the obstacles in the deposit because of increased property prices paired with the growth of low-income households and lack of interstate migration.

Moreover, the surge in new property listings over December also caused the slowdown in a price increase on Sydney and Melbourne property markets.

On the other hand, slowdowns occurring in Perth can be attributed to the lack of interstate migration. This is due to movement restrictions and closed state borders, hurting the region’s housing demand.

Property Market Insights for 2022

The stocks for residential properties across Australia are considerably low for 2022, at 35.9% lower than the 5-year mean value. Furthermore, with all capital cities’ housing stock combined, it’s still roughly 14.2% below the same average.

Regional markets with a better appeal to a good lifestyle will also continue taking the upper hand thanks to the new normal leaning towards remote working setups. As international borders remain closed, these markets will also attract more buyers looking for holiday homes.

But as rates dwindle and more markets become less affordable, the price growth trend may experience a downward curve throughout 2022. With the supply drastically exceeding the demand, buyers may have the upper hand for negotiation this year.

Looking for Finance on Your 2022 Purchase?

The increasing rate of low-income households and the ever-increasing property prices have led to more barriers to market entry. Many first-home buyers struggle to make a deposit without government schemes and pay for stamp duty, among other expenses.

That’s why we at Plan A Mortgage are more than happy to help you crack the property market. We’ll discuss your current financial capacity and borrowing power and take you through different lending options that work for your needs.

Feel free to get in touch today, and we’ll let you know how we can help secure your 2022 housing goals.


This article presents content in a general nature and is solely for informative purposes only. It does not aim to provide public nor personal financial or tax advice. It does not include nor put into consideration your unique situation or circumstances. Before taking an active decision, seek expert advice and thoroughly examine your current position. Moreover, this article is protected by intellectual property and copyright laws and should not be reproduced without prior written consent.

2022 forecast: places where housing prices aren’t slowing down

2022 forecast: places where housing prices aren’t slowing down

National housing values grew 22.1% in 2021, and there are two capital cities and one region in particular that are not ready to slow down just yet. Can you guess where?

Happy New Year everyone! To kick off 2022, we’re looking at how the property market performed across 2021, and what we can expect over the next 12 months.

The most recent CoreLogic data reveals there’s a two-speed housing situation emerging across the country, with prices in Sydney (+0.3%), Melbourne (-0.1%) and Perth (+0.4%) slowing down in December.

On the other hand, Brisbane (+2.9%), Adelaide (+2.6%) and regional Queensland (+2.4%) are set to defy 2022 slowdowns, with CoreLogic saying there’s “no evidence of their growth slowing just yet”.

In fact, the monthly rate of growth for each of these regions reached a new cyclical high in December.

“In Brisbane and Adelaide, housing affordability is less challenging, advertised stock levels remain remarkably low and demographic trends continue to support housing demand,” explains CoreLogic’s Research Director Tim Lawless.

Hobart (+1%), Canberra (+0.9%), and Darwin (+0.6%) meanwhile performed smack bang in the middle of the pack in December.

So what’s causing the slowdown in other markets?

The annual housing value gains in the nation’s two biggest cities, Sydney (+25.3%) and Melbourne (+15.1%), were stellar in 2021.

But momentum has slowed sharply, with both cities recording their softest monthly reading since October 2020.

The slowing trend can partly be explained by a bigger deposit hurdle caused by higher housing prices alongside low-income growth, says Mr Lawless, as well as negative interstate migration.

“A surge in freshly advertised listings through December has (also) been a key factor in taking some heat out of the Melbourne and Sydney housing markets,” adds Mr Lawless.

Slower conditions across the Perth housing market, meanwhile, may be more attributable to the disruption to interstate migration caused by extended closed state borders.

“This has had a negative impact on housing demand,” adds Mr Lawless.

So what can we expect in 2022?

For starters, housing stock is very low across regional Australia in particular, with advertised stock levels finishing the year 35.9% below the five-year average.

This compares to combined capital cities seeing stock 14.2% below the five-year average.

“It is likely regional markets, especially those with lifestyle appeal, will continue to benefit from higher demand as remote working policies are more normalised, and demand for holiday homes remains strong amid continued international border restrictions,” says Mr Lawless.

“However, as interest rates begin to bottom out, and affordability constraints extend to regional markets, these housing markets may also move into a downswing phase over the course of 2022.”

And while sellers held the upper hand at the negotiation table in 2021, buyers are expected to regain some leverage in 2022.

That’s because the average time properties spend on the market is beginning to increase, while auction clearance rates are trending down.

Need help to finance your 2022 purchase?

The juxtaposition of higher housing values against low-income growth has resulted in higher barriers to entry.

“It is becoming increasingly harder to raise a deposit and fund transactional costs such as stamp duty,” says Mr Lawless.

This is why 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 this 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.

So 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 property goals.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.



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