Major bank forecasts further price increases in major cities
Australia’s property boom just keeps on going, and even more pressure is expected as NSW Premier Dominic Perrottet has announced that NSW will open its borders to vaccinated international visitors from November 1. This is just one reason why Westpac has increased its predictions for home price growth in major cities.
The NSW Premier surprised reporters earlier today with his announcement which could allow tens of thousands of stranded Aussies and overseas visitors back into the country.
“For double vaccinated people around the world, Sydney, New South Wales is open for business. We want people back. We are leading the nation out of the pandemic,” Perrottet told reporters in a statement.
“Hotel quarantine, home quarantine is a thing of the past. We are opening Sydney and New South Wales to the world, and that date will come in on November 1st. This is a significant day for our state.”
Westpac’s previous house price growth forecast of 22% for Sydney in 2021 has already been breached and is continuing to grow. So just how much do its economists predict that home prices will have risen by the time we start carving the turkey?
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Even though APRA’s new rules mean that many borrowers will see a 5% cut in borrowing capability, demand is still strong, and any dampening effect from the lockdown will soon be gone. Last week, auction rates in every capital city hit 80% and figures showed that Sydney’s median house price had cracked through the $2million mark.
Westpac’s economists also believe that the reopening will easily outweigh APRA’s new moves; so the question remains, what will stop Australia’s runaway property boom?
The world’s fastest growing house prices (to June 2021)
Source: Knight Frank