PHOTO: Sydney, Australia
- Finder survey of 40 experts predicted $200,000 Sydney house price rise 2021
- Economists, real estate players are forecasting a 21 per cent annual increase
- Melbourne, Perth tipped to see 15 per cent rise as Brisbane prices up 17 per cent
Australian property prices are set to rise by another $200,000 this year locking more young people out of real estate thanks to record-low interest rates.
Sydney’s median house in April rose by 2.8 to a record high of $1.147million as Melbourne’s equivalent value climbed by 1.4 per cent to $869,676, CoreLogic data showed.
A Finder survey of 40 economists and real estate experts expected house prices in Australia’s biggest city to climb by 21 per cent in 2021 as record-low interest rates encouraged borrowers to snap up property in a nation that has contained Covid.
With property prices continuing to climb as unemployment falls, investors are buying houses in the hope of being able to sell for a profit in only a few years.
That would see Sydney’s mid-point price, compared with December’s $1.015million, climb by $213,224 by the end of this year to $1.229million.
A predicted 21 per cent rise would see Sydney’s mid-point price climb by $213,224 by the end of this year to $1.229million. Pictured is an Auburn house, price guide $970,000 to $1,050,000
Melbourne’s median house prices was expected to rise by an annual pace of 15 per cent or $120,000 to $920,000 as Brisbane’s mid-point rose by 17 per cent or $100,000 to $674,315.
Perth prices were expected to increase by 15 per cent or $73,621 to $564,432.
In November, the Reserve Bank of Australia cut interest rates to a new record-low of 0.1 per cent.
Since late last year, real estate values have surged, with three of Australia’s big four banks offering fixed mortgage rates under 2 per cent.
House price increase forecasts
SYDNEY: Up 21 per cent or $213,224 to $1.229million
MELBOURNE: Up 15 per cent or $119,997 to $919,977
BRISBANE: Up 17 per cent or $97,977 to $674,315
PERTH: Up 15 per cent or $73,622 to $564,432
ADELAIDE: Up 13 per cent or $65,628 to $570,457
Source: A Finder survey of 40 experts forecasting median house prices for December 2021 compared with December 2020 CoreLogic figures
READ MORE VIA THE DAILY MAIL