Westpac economists project significant home value increase from late 2021
Recent house valuation forecasts prepared by Westpac economists found that despite minor drops in Australian home prices due to COVID-19, homes were set for a positive rebound by December next year.
The forecast projected a staggering 15% increase over two years across several Australian states.
"Apart from Victoria, where we expect prices to fall in the December quarter, we expect that in the December and March quarters in the other states, prices will be relatively stable with some upside pressure."
Bill Evans, Westpac's chief economist
The economists have also provided positive projections for Q2 of 2021, with the anticipated 10% drop in house prices being revised to 5% due to the economic resilience proven thus far.
"We are much more optimistic about the pace of price appreciation over the following two years."
The news is likely to reinstate greater confidence in the market post-pandemic. With such low-interest rates and several off-the-plan projects still commencing construction, we could see an uptake in apartment sales in the coming months.
We asked INPG Sales Director, Andrew Steele, what this meant for off-the-plan property buyers. Andrew commented that finding a property nearing completion by December next year could be a wise option.
“This is great news and reflects the market more realistically that the doom and gloom stories we’ve heard over the past few months. Buyers should be buoyed by Westpac’s revised outlook and look to snap up opportunities now, especially off-the-plan properties due to be completed around the time Westpac predicts significant price growth.”
Andrew Steele, INPG Sales Director
