The projected end of the COVID-19 pandemic boost sentiment in Victoria that is projected to deliver 8 -12 per cent capital growth in 2021.

The most important developments since our August report have been VIC’s outstanding success in almost eliminating COVID-19 and consequently the significant unwinding of restrictions across VIC and the reopening of the VICNSW border.

As projected, the second wave of COVID-19 has had a major immediate impact.

However, following the end of the pandemic, the Melbourne market has similar projections to Sydney, with a chronic undersupply driving land values higher, yet unit oversupply increasing both equity and serviceability risk.

The landscape of the housing market in VIC has shifted rapidly, particularly in the past month, from a buyer’s market to a seller’s one.

Only three months ago home buyers in Melbourne were in solid position to leverage on the market conditions then, with very low volumes and … Read more

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The forecasts for property forecast for 2021 are starting to come in thick and fast and they’re all very positive.

The latest is from SQM’s Louis Christopher who suggests that Australian capital city dwelling prices will rise in 2021 as a result of this year’s aggressive government stimulus, interest rate cuts and the upcoming changes to responsible lending laws. 

This is in line with the forecasts made by all our major banks who over the last few weeks have sheepishly been forced to do a long overdue 180 degree turn, conceding that our property markets have remained resilient and they all now expect property prices to rise in 2021 and 2022.

The economics communities have not exactly covered themselves in glory when it comes to predicting the future of Australia’s biggest asset class.

In his Housing Boom and Bust Report 2021 released today Christopher’s base case forecast is for dwelling … Read more

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The landscape of the housing market in New South Wales has shifted rapidly over the past three months from a buyer’s market to a seller’s one.

Only three months ago homebuyers in Sydney were in solid position to leverage on the prevailing market conditions.

This is, however, no longer the case, with a sharp increase in buyer sentiment and auction clearance rates.

With regards to COVID-19, several vaccinations are likely to be rolled out in 2021 providing confidence that a sustainable solution will ultimately be found, and consequently this will deliver a major confidence boost to the economy.

However, investors buying rental apartments in heavily supplied areas are still taking a high risk with both equity and cashflow risk materially increasing.

The NSW market, jointly with VIC the most volatile market in recent years, is likely to experience strong price increases in the range of 8-12 per cent in 2021 … Read more

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