ANZ has revised its Australian property price forecasts and now expects dwelling values to rise by more than 20% in 2021 followed by 7% growth in 2022:
Property prices are expected to rise 24 per cent in Canberra by year’s end and 23 per cent in Sydney and Hobart… Gains of 21 per cent and 20 per cent are expected in Brisbane and Melbourne, respectively…
The next chart shows the year-to-date dwelling value growth across the major capitals. Note: Perth’s dwelling values index has been temporarily suspended due to anomalies.
Turbo-charged growth.
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Given we still have four months to go in 2021, ANZ’s price growth forecasts look realistic overall. However, they are probably too pessimistic for Sydney and overly optimistic for Melbourne.
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
