Experts expect 12% property price rise

1 March 2021
| By Chris Dastoor |
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

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago