As we bid farewell to 2020 – joyously waving goodbye with one hand and clinging to a champers in the other – our property investment experts share their predictions for the next 12 months.
After a turbulent year of fires, floods, a global pandemic and widespread toilet paper shortages, we dare enter 2021 with optimism. Our property investment experts believe that there is a lot to be optimistic about as they share their expectations of the property market in the next 12 months.
Simon Pressley, Propertyology head of research and REIA hall of fame inductee
A period of very high rates of home ownership and wealth creation is underway. History will reflect upon this as a once-in-a-generation era of capital growth plus Australia’s highest ever increase in rents.
While Sydney and Melbourne will continue to be vulnerable markets, several alternative locations will produce more than a 20 percent increase in house prices in 2021 and possibly double in value within five years. Without a doubt, those earliest to the party will enjoy the best time.
InvestorKit’s head of research Arjun Paliwal and Suburbtrends’ Kent Lardner
Victor Kumar, director Right Property Group
2021 will be an interesting year as we get to several milestones:
All of these will lead to a largely buoyant market, especially in the middle and outer rings, with a strong sea and tree change still underway. There is likely to be double-digit growth in these areas, while the inner-city areas are likely to continue to struggle from a rental perspective.
Sydney and Melbourne are likely to lead the way, while Brisbane is expected to finally show some growth, especially in the investment-heavy areas.will continue its strong growth surge, although it is likely the rentals will slip back to normal as borders open up again.
2021 is likely to be a year where you can acquire selectively and will hold you in good stead in years to come, but one must be cautious not to overcommit given the current low interest rate.
Sharon Fox-Slater, EBM RentCover managing director
The property market in 2021 will continue to evolve as the COVID-19 pandemic evolves. While there are still many unknowns, there are a few obvious forecasts for the year ahead. These include the digital transformation of the industry, and the need to better safeguard investments through adequate landlord insurance cover.
If we look back, COVID-19 saw a raft of changes in this space: a number of landlord insurance providers exited the market; the number of policies offered was limited; insurers amended their offering to exclude certain risks; and most stopped offering products that cover rent default. If we look forward, I think all of this highlighted insurance cover is an important part of an investment property strategy in 2021.