Property Boom

Proof house prices will surge in 2021

PHOTO: Brisbane auction

Australia’s property market is heating up with monthly sales of new homes almost doubling in just one month.

In December, 13,527 newly-built houses were sold – a surge of 91.8 per cent compared with November marking the biggest monthly lift since March 2001, new Housing Industry Association data has revealed.

The news was released a day after it emerged the Reserve Bank of Australia is bracing for a 30 per cent increase in real estate values during the next three years as a result of record-low interest rates.

HIA economist Angela Lillicrap is expecting some of the sales momentum to continue this month, after the federal government extended until March 31 $15,000 HomeBuilder subsidies for those who build a new home or substantially renovate an existing one.

‘Low interest rates, improved lending assessment and growth in the price of established homes will also support demand for new homes in 2021,’ she said.

‘It is not expected that this remarkable volume of sales will continue into January.’