house prices

Real estate recovery: Westpac predicts Australian house prices will come roaring back

PHOTO: Brisbane’s median property price was tipped to surge by 20 per cent in the two years from 2021, more than offsetting a two per cent decline over one year. Pictured is a New Farm house in the city’s inner-north

Westpac is now expecting Australian capital city house prices to surge by 15 per cent after bottoming out in 2021.

Australia’s second biggest bank has revised its property market forecasts to be more upbeat despite the onset of the first recession in almost three decades as a result of coronavirus shutdowns.

Property price rises are expected to more than offset this year’s steep falls in every major city except Melbourne.

Westpac chief economist Bill Evans and his colleague Matthew Hassan said the likelihood of a COVID-19 vaccine would spark a real estate resurgence from next year as interest rates remained at a record-low of 0.25 per cent and governments spent billions on stimulus measures.

Westpac’s housing market recovery tips

SYDNEY: A 14 per cent surge from 2021 to 2023 following a five per cent downturn in 2020 and 2021

MELBOURNE: A 12 per cent increase from 2021 to 2023 failing to offset a 12 per cent drop over one year

BRISBANE: A 20 per cent rise from 2021 to 2023 would more than compensate for a two per cent fall

PERTH: An 18 per cent increase from 2021 to 2023 would more than offset flat prices during the pandemic

ADELAIDE: A 10 per cent rise from 2021 to 2023 would significantly make up for a small two per cent rise