With Sydney opening their borders to overseas travellers on November 1st, and then interstate boarders set to open in the coming months. The outlook for Australian property prices is set to keep going up in a very aggressive way.
Property demand has never been higher. We have set new records for month-on-month growth, and APRA’s new regulations are unlikely to make much of an impact to our populations’ hunger for property.
On the 16th of October 2021 a report was released by the big four banks detailing their revised rates of property growth in Australia for 2022.
They all increased their projected property price growth by an average of 4.16 per cent.
The Banks economists predict that the reopening of Australia will far outweigh the introduction of the new lending rules.
Australia sits 7th in the world for the fastest growing property prices. This is extremely hard to fathom given our capital cities have endured the world’s longest lockdowns, not to mention one of the only countries in the world still imposing a curfew on its citizens.
To think that under these conditions we have pushed our property market to grow the fastest it has grown in over 40 years makes me wonder what 2022 looks like.
This begs two questions for me.
What happens in 2022 when people can travel again? Will this reduce the desire to spend so much money on the 4 walls you live within. Or will they still be fearful of travel and keep outlaying the majority of their income on their homes?
How much longer can this continue?
In my opinion the entire world is in a state of hysteria and the economy may be superficially booming. I believe this is going to come crashing down in a big way in the next 12 months. We’re approaching 15 years since the last global correction and how COVID-19 has sent the world skyrocketing upwards doesn’t sit right with me personally. Time will tell, but I think it’s out of control.