While many factors affect property
values, the main drivers of property price growth are consumer confidence,
low-interest rates, the availability of credit, economic growth, and a
favorable supply and demand ratio.
As always, there are multiple real estate
markets around Australia, but in general property values should increase
throughout 2022, but at a slower rate of growth than 2021.
One of the leading indicators to watch
carefully is housing finance approvals, and these are still at very high levels
suggesting that many Aussies are still looking at getting into property,
meaning we will have continuing strong ongoing demand from owner-occupiers and
investors in 2022.
With the increase in value of houses
strongly outpacing the apartment market recently, now with the differential in
price between units and houses at the highest level on record, and with houses
becoming more unaffordable for many, I can see strong capital growth ahead for
family-friendly apartments in great neighborhoods.
Even apartments in the CBD towers and
accommodation around universities should pick up as immigrants and students return,
however, these never really made good investments and I would steer clear of
them.
Rents should also keep increasing in 2022
as there is a desperate shortage of good rental accommodation around Australia.
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Jason Gwerder
Tuesday, 7 December 2021
