The real estate industry weighs on the residential market 2022

By on January 6, 2022 0

Australia’s white-hot housing market has seen massive gains in value over the past 12 months as record interest rates and an acute shortage of homes for sale fueled a sales frenzy.

Thanks to the federal government’s HomeBuilder program, a huge volume of homes are currently under construction across Australia as buyers continue to opt for single-family homes, which rose 24.6% in 2021, surpassing the increase in 14.2% of national unit values. through the increasing adoption of hybrid work-from-home policies.

Housing prices in regional markets have risen twice as fast as their counterparts in the capital over the past year, with large coastal centers near capitals attracting the most metro movers.

The pandemic has also provided a catalyst to kickstart and accelerate the supply of rental construction, as non-existent international arrivals and investors push many developers of traditional construction apartments for sale to the nascent sector that does not have to do with it. deal with retail processes and also benefits from faster construction times.

As prices have risen at the fastest annual growth rate in 30 years, they have recently started to cool, with the Big Four banks, along with a number of the nation’s top economists, tipping prices will hit a rock bottom. peak around the second half of 2022 as borrowing increases. costs and fatigue set in and weigh on buyer demand.

To learn more, The urban developer turned to some of Australia’s leading real estate experts for their thoughts on the year ahead.