In this week’s episode, Dave, Cate and Pete take you through:
- Why the market will rise in 2021. The trio explain the key factors at play that will continue to drive property prices up throughout the year.
- The risks to our economy and property prices. They outline possible events and market forces that could dampen the economy and property prices, however we believe the factors stimulating the economy and property prices will outweigh any bumps in the road.
- A detour into rental markets. Although vacancy rates have increased for Sydney and Melbourne, there are particular properties that are outperforming, with rentals being snapped up quickly and above the asking price. The Property Professor explains why.
- Predictions for regional activity. Regions have been the top performers for 2020, but will this growth continue in 2021? The Property Buyer makes predictions on what we can expect to see in regional markets.
- Capital cities – who will come out on top? The trio agree that all capital cities will see value increases over 2021, but have differing opinions on which capital city will be leading the pack at the end of the year. They explain the drivers putting upward pressure on prices for each capital city.
- Building industry set to take off. With the government throwing money towards the construction of new homes through the HomeBuilder and first-time buyer incentives, we expect that tradies and builders will be flat chat and turning away work in 2021. The desire of many Australian families to add a room or extend their home will further exacerbate this trade shortage issue. This will be a key driver for our economic recovery.
- The outlook for apartments. Apartments and office spaces have been the hardest hit investments during the global pandemic, particularly high density apartments in the Melbourne and Sydney CBD. We predict that penthouses and 3-bedroom apartments will recover quickly and exhibit growth, while bedsits and 1-bedroom apartments will continue to languish.
- Investors to return with a vengeance. 2021 is primed with conditions ripe for investors to make a comeback. Debt affordability is the best since 2001, we have the greatest level of savings on record, interest rates are at all-time lows and anticipated relaxation of lending rules to occur in March, all creating the perfect storm of investors to launch back into action.
- Abolition of stamp duty. The Property Planner makes a long-term prediction, that if the transition away from stamp duty goes well for NSW in 2021, other states will follow suit.
- Runaway prices and APRA intervention. With investors predicted to return to the market in droves, housing affordabilty will become an issue in the media towards the middle of the year, the government will chime in and APRA will intervene with measures to cool down the market towards late 2021 or 2022.
- And of course, our “gold nuggets”!
Cate Bakos – The Property Buyer’s Golden nugget: make sure you’re listening to the right noise. You need to be keeping an eye on economic indicators. If this is the year you’ve targeting for buying your first home, be mindful that conditions are ripe and the fact that we’ve got lending availability loosening, it could be a market that moves quickly. If this is the year, now is the time to take action.
Peter Koulizos – The Property Professor’s Golden nugget: get your ducks in a row, see a strategic mortgage broker, qualified property investment advisor, if you don’t know how to do it yourself, go and see a great buyer’s agent. There’s no doubt that prices will be up by the end of this year, and then it will be up in 2022 as well.