The 2022 federal election: What to expect for housing affordability
Unless a structural change to the Australian economy takes effect, greater housing affordability is not likely to happen...
2021 was a remarkable year in terms of property prices for several reasons. Not only did growth top 20 per cent for the first time since 2002, but according to one industry leader, the way in which prices rose was irregular compared to years past.
“The rising tide did lift all ships in 2021,” commented Ben Kingsley, chairman of the Property Investors Council of Australia (PICA).
“What was interesting, because it’s unusual to see this happen right across Australia at the same time, is that growth rates in many major regional centres matched or beat some of the capital city markets, on the back of COVD-19 regional demand remaining very strong right throughout 2021.”
While the great regionalisation is expected to continue to remain a popular lifestyle shift throughout the coming year, Mr Kingsley opined that if Australia’s market recovery remains on track, we would see a return to differing levels of growth across markets and property classes.
“Generally speaking, growth levels of this nature year on year are very rare and hard to sustain right across Australia, so I believe we are going to move away from a unified growth story, where all markets are firing, and move back to the markets within markets story with some markets representing better value than others,” he said.
And though 2021 was considered a great year to sell properties with encumbrances that might have previously struggled to find buyers, Mr Kingsley said that the capital markets, in particular, might once again be somewhat divided in terms of the percentage returns expected on properties of different condition and calibre.
“Usually, in a turning or softening market, A class assets sell well, but the vendor sale price expectations of B and C class asset might need to be adjusted.”
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.