Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Experts expect 12% property price rise

Graham-Cooke/finder/property/

1 March 2021
| By Chris Dastoor |
image
image image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

2 weeks 6 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

3 weeks 6 days ago

So we are now underwriting criminal scams?...

7 months ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

3 weeks 1 day ago

WT Financial’s Keith Cullen is eager for its Hubco initiative to see advice firms under its licence trade at multiples which are catching up to those UK and US financial ...

3 weeks 5 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

6 days 22 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND