This year was a big year for Australia’s property market as they finished with outstanding results, even reaching $9 trillion in value in September. Let’s take a quick look back at some of the highlights in the industry in this 2021 recap.
Brisbane: a surprising winner
This year, Brisbane’s property market was dubbed as Australia’s fastest-growing property market based on 2021 figures as its property values continued to increase. This happened even while markets in Sydney and Melbourne slowed down.
Based on Core Logic’s Best of the Best report, Brisbane housing values were up 2.9% in November and 7.4% in the last quarter. Brisbane's annual growth rate is also now 25.1%, behind Sydney's 25.8% and Melbourne's 16.3 %.
Core Logic’s head of research attributed this growth to the city’s low stock levels that kept buyer competition tight. Usually, there are 24,000 houses for sale in Brisbane, but this year there are only 14,000 properties in the market.
Supplies still fall short even as listing increased
There are nearly 45,000 new properties entering the market in the four weeks leading up to mid-October. However, this is still not in keeping with the demand.
In many parts of Australia, 1.4 properties are sold for every new property that comes on the market for sale. In fact, sales to new listing rates are as high as 1.8 in the Australian Capital Territory and Adelaide and only Perth and Melbourne units fall below 1.0. Meaning, demand in the capital city remains strong, with purchasers out in force at a time when available supply is trying to keep up. There is still hope for homebuyers though as experts see the gap narrowing between supply and demand in December.
New home loan policies
Policymakers are concerned that borrowers are taking on ever-larger sums of debt, leaving them exposed to an economic crisis, as property prices rise significantly faster than incomes. In response, the Australian Prudential Regulation Authority (APRA) increased the serviceability buffer in October.
APRA explained the change in a letter to lenders and said it expects authorised deposit-taking institutions to assess a new borrower's ability to meet loan repayments at an interest rate that is at least 3.0% higher than the loan product rate. Meaning, those seeking home loans may be able to borrow less.
Fastgrow continues to help people find the right finance products
At Fastgrow Finance, we understand the ins-and-out of the market. This is why we’re able to help more and more people as regulations tighten and the markets change. And just like how we seek to understand the market, we also take a deep dive into our client's goals and situation to provide the best solutions that suit their budget. This makes us one of the trusted mortgage brokers and consultants in Australia.
If you need any type of loan, feel free to contact us. Our experienced brokers will work with you to find a lender that’s perfect for you.
Contact us through the following channels:
- Phone: (02) 9630 3142
- Email: [email protected]