Property prices will jump 12% by 2023, according to experts in a survey from Finder.
In this month’s Finder RBA Cash Rate Survey, experts said that property prices would have to increase by at least 23% for a bubble to form.
Graham Cooke, head of consumer research at Finder, said with Australia’s property market on the rise, first-time buyers with a deposit saved would be well advised to pounce sooner than later.
“With more than $120,000 set to be added to the value of the average Sydney home over the next two years, the brief period of ‘affordable’ prices appears to be ending,” Cooke said.
“The ABS [Australian Bureau of Statistics] lists the median Aussie income at $49,805, so homeowners in the Harbour City will be earning 22% more than the average income, just by living in their homes for two years.”
This issue could be exacerbated if first home buyers were also allowed to access their super for a house deposit, which could increase capital city house prices by 8%-16%.
Experts also expected the Reserve Bank of Australia (RBA) cash rate to hold at 0.1% and the majority expected a stagnant rate in 2021.
House prices in each capital city
|
City |
November 2020 median sales price last three months |
Predicted increase in price* |
Predicted price after two years |
|---|---|---|---|
|
Sydney |
$1,010,000 |
$121,200 |
$1,131,200 |
|
Melbourne |
$780,000 |
$93,600 |
$873,600 |
|
Canberra |
$767,000 |
$92,040 |
$859,040 |
|
Brisbane |
$575,000 |
$69,000 |
$644,000 |
|
Hobart |
$565,000 |
$67,800 |
$632,800 |
|
Perth |
$526,250 |
$63,150 |
$589,400 |
|
Darwin |
$513,500 |
$61,620 |
$575,120 |
|
Adelaide |
$510,000 |
$61,200 |
$571,200 |
Source: Finder, CoreLogic *Average of predictions from 28 economists.
