In 2022, which cities are predicted to have the most price increases

According to REA Group, national property prices are expected to climb by up to 9% in 2022, but which cities are expected to lead the way in price growth this year? Let's have a look at what we've got.

In 2021, national housing values increased by a whooping 22.1 %, and while things are likely to calm down in 2022, the party isn’t over yet.

Particularly if you live in Hobart (9 % to 12 % anticipated growth), Brisbane (8 % to 11 %), Adelaide (6 % to 9 %), or Canberra (6 % to 9 %) (6 % to 9 % ).

“Because of their short supply of property for sale, heightened demand, and comparatively lower prices compared to Sydney and Melbourne, Brisbane and Hobart have the best price increase estimates among the major cities,” says Cameron Kusher, REA Group’s executive manager of economic research.

Meanwhile, housing values in Perth (3% to 6%), Sydney (4% to 7%), Melbourne (4% to 7%), and Darwin (5% to 8%) are anticipated to rise – but not as quickly.

“While the more costly property prices in Sydney and Melbourne may progressively see demand move to more cheap home regions,” Mr Kusher continues, “Perth has already demonstrated a stronger slowing in price increase relative to other capital cities.”

Predictions for house prices in 2022

Here’s how each capital city’s expected price rise in 2022 will be broken out for you in a simple format:

Sydney: 4% to 7%

Melbourne: 4% to 7%

Brisbane: 8% to 11%

Adelaide: 6% to 9%

Perth: 3% to 6%

Hobart: 9% to 12%

Darwin: 5% to 8%

Canberra: 6% to 9%

All capital cities combined: 6% to 9%

So, what is the reason for the projected slowdown in housing prices in 2022?

For starters, in 2022, purchasers may anticipate to have more options.

According to REA Group’s PropTrack data, buyer demand peaked in August 2021, and a more balanced market is projected in 2022.

According to Mr Kusher, this indicates that suppliers may have to adjust their pricing estimates, and that the rise in housing supply, if it continues, would likely impede price increases in 2022.

Mr Kusher adds, “The recent increase in new listings could help more buyers find a house.”

In the next paragraphs, you’ll be asked: What is the size of the next wave of buyers? We expect that the next wave will be bigger than the present one, but not as enormous as the current one, so there should be a better supply-demand balance.”

“We foresee a lesser wave of purchasers because prices have risen and some buyers have been priced out.”

Does your 2022 purchase require financial assistance?

When it comes to securing your next property acquisition – whether that be your dream house or an addition to your investment portfolio – it’s never been more vital to have a broker in your corner than it is now, with property prices expected to continue to rise throughout 2022.

In today’s market, it’s also crucial to know your financing capacity before you start looking for a home so you don’t overextend yourself.

Contact us right away if you’d like to learn more about what you can borrow. We’d love to sit down with you and help you devise a strategy for achieving your financial and real estate objectives in 2022.

To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at finance@pfga.com.au


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