House prices to rise by 16 percent over 2021 and 2022: CBA forecast
Australia is on the “cusp of a housing boom”, according to the Commonwealth Bank, which has forecast house prices will skyrocket by a massive 16 percent over the next two years.
An economics issues paper by the bank’s head of Australian economics, Gareth Aird, predicted national house prices would rise 9 percent rise in 2021 and a further 7 percent in 2022.
While Sydney and Melbourne are tipped to rise by 7.5 percent and 7 percent in 2021, respectively, its price growth outside of the country’s two largest capitals is expected to really soar.
Darwin is predicted to rise by 12 percent by the end of this year, Perth by 10 percent, Brisbane by 9.5 percent, and Hobart, Adelaide, and Canberra all by 9 percent.
It’s a stunning turnaround from the dire predictions made during the pandemic’s early days last year, which Mr Aird admitted had taken many in the industry by surprise.
“The negative impact that COVID-19 had on Australian property prices turned out to be much more muted than almost any forecaster expected, us included,” he wrote.
“We were earlier than most, however, to recognize this and revised our call in September 2020 to look for a smaller peak-to-trough fall and a decent lift in prices over 2021.