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.
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