Stephen Koukoulas, an economist and research fellow at Per Capita, a progressive think tank, re-tweeted on the global pandemic and deep recession not being enough to weaken house prices in Australia, with the cost of property set to climb in 2021.
While some experts forecasted a 40-45% dip in house prices in the next three years starting from September 2018 when house merchants feared the collapse in house prices, the chances of a 35% price fall before the end of 2021 are also looking slim, with cost of property set to rise in the year ahead, Koukoulas highlighted.
The Australian Bureau of Statistics (ABS) further revealed that house prices in eight capital cities rose 0.8% in the third quarter of 2020 and was 4.5% higher than in 2019. Data also suggested that Sydney’s house prices rebounded 9.2% after the second quarter of 2019, while Melbourne prices were up 8.5% and the eight capital cities were up 7.0% respectively.
Although unofficial house price data for the fourth quarter of 2020 confirm rising prices across all cities, driven and supported by low interest rates, it is likely to be offset by the low demand linked to low immigration and increased supply from new construction activity, Koukoulas adds.