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Australian Property Market 2022: Where prices are headed?
When analysing the Australian property market for 2022 and beyond, there are a lot of positive indicators that will reflect some strong growth in the majority of capital cities across the nation.
The pandemic has helped shape the future of Australian Real Estate, as we enter a new and exciting era within the industry, set to bring an unprecedented number of home upgrades and relocations in the countries history.
As a result of the strong growth experienced across Australian real estate over the past 18 months, households have accumulated record levels of household equity and reserve cash.
It is expected that Australia’s economy will be cranked up a notch in 2022, with businesses expected to invest in excess of $200 billion this year. Furthermore. Australia has commenced its biggest-ever infrastructure boom, with over 430 projects currently underway, worth in excess of $218 billion due to be completed by 2025.
We are beginning to see the relaxation of border restrictions, and as a result, we will begin to see more overseas migration into Australia. At present, there are a record number of jobs currently advertised, and with an insufficient skilled labour workforce to fill these positions, we must rely on overseas migration to fill these positions.
As of the end of January 2022, there were 163,283 properties listed for sale across the country, which represents an 11 year low in terms of stock levels. The last time Australian resale supply was at this level, the population was 3.5 million less, and the nations total dwelling stock was 1.8 million less. As a result of the low levels of stock available, it is anticipated we will continue to see upward pressure on asset values for 2022 and into 2023.
If you would like to discuss the Australian property market in more detail, please reach out to the team to organise a time to have a conversation about how Wealthi can help you build a successful property portfolio.
Chris Hynes is Wealthi’s Global Research Analyst, Based in London