Property prices to rise across multiple markets in 2021: ME’s Andrew Bartolo.
Property prices are expected to rise across multiple markets in 2021, according to ME’s head of home loans, Andrew Bartolo.
He expects a resilient housing market that has weathered the economic pressures of COVID-19 together with lower interest rates will give homebuyers and investors’ confidence.
According to a ME survey of 1,500 households conducted this month, 46 percent of owner occupiers expect the value of their dwelling to increase during 2021.
Only 5 percent anticipate a decline reflecting a substantial change from six-month prior when only 22 percent expected dwelling prices to rise and 25 percent expected them to decline.
Sentiment among those intending to buy or sell in the next 12 months will likely be "two-speed," he expects.
"Many will be looking to buy or sell as soon as possible, while others may delay their move until they feel more confident about their own personal finances and/or the economy.”
Buyer activity is expected to be up year on year due to so much of 2020 being affected by lockdowns and buyers and sellers waiting to see.
“More investors will re-emerge in 2021 in search of income and capital growth.
"Record low interest rates will drive momentum across the market.
“Strong first home buyer activity will also continue, after a brief dip in property prices.
"Historically low interest rates, stamp duty exemptions, government grants and the absence of foreign investors will continue to propel first home buyers into action.”
He expects early 2021 is expected to be a bumper property season that will rival the traditional spring frenzy as buyers respond to a late surge in auction listings.
“Topping the property trends in 2021 is the desire for ‘urban village’ living, related to the significant increase of professionals working from home," he noted.
“While there are still many challenges including unemployment, job insecurity and lower immigration, we’re seeing some positive signs: improved consumer confidence, stronger auction clearance rates, more transactions, and falling loan deferrals – generally considered proof of a healthier market."
