2021 Property Year in Review

2021 was an incredible year for property in Australia, with prices surging across major cities and many regional areas.

Keeping in mind that figures do change almost daily, here’s a look back at some statistics and average house prices in markets around the country:

Sydney

Sydney’s property market saw impressive growth in 2021.

Property statistics for all dwellings showed an increase of more than 25% between November 2020 and November 2021. The value of houses increased by over 30%, bringing the average price of a home in Sydney close to $1.5 million.

Sydney homeowners ‘earned’ an average of $6,700 per week due to market increases. If you’re looking to sell in this market, 2022 is still a good time to secure a strong price.

Melbourne

Despite the pandemic hitting hard, prices rose by around 16% across Melbourne in 2021, bringing the average value to over $1 million. This was partially driven by Melbournites upsizing to larger homes so they had more space during lockdowns. Low interest rates and a lack of stock on the market also contributed to the growth in value.

Brisbane

Brisbane saw growth almost as strong as Sydney, with an impressive 25.12% rise in average house prices during 2021. When the Gold Coast is included with Brisbane statistics, the average price rise was 26.34%.

Brisbane’s popularity swelled as many people decided to leave Sydney for warmer weather and more affordable homes (buyers are paying an average of around $750,000 in this part of the country).

Adelaide

Adelaide managed to avoid extended lockdowns and buyers remained active, pushing prices up by more than 20% over the course of 2021.

The average price of a home in Adelaide has reached $560,000, with the jump being attributed to the supply on the market being lower than in previous years.

Perth

In Perth and around WA, prices surged more than 18% in 2021, taking the average to over $520,000. This is one market where first home buyers find it a little easier to get their foot in the door of a family home.

Darwin

At the top of the country, Darwin saw respectable growth in 2021, with a 16.68% price jump across all dwellings. Rental prices rose by 20%, which reflected a lack of rental properties in the city after an influx of interstate migration.

Hobart

Down south, Hobart had an increase of 27.66% across all dwellings. Hobart also easily topped the nation for unit price increases, with average values rising by 32.10%. Again, low availability and a surge in new residents drove the price jumps.

Regional Australia

Growth in cities like Brisbane, Darwin and Hobart showed how Australians were relocating during COVID and regional Australia experienced its own influx of newcomers.

Outside the major cities, property prices grew by 28.50% between October 2020 and the same month in 2021.

What to expect in 2022

When COVID initially struck in 2020, there were fears the property market would drop because of a lack of migration and people losing their jobs. However, the last two years have shown that thanks to a lack of stock on the market and low interest rates, buyer demand remained strong.

The general forecast for 2022 is more of the same, although house prices aren’t expected to climb at the same pace. New regulations around borrowing and a forecast rise in interest rates may serve to cool the market, plus there are unpredictable economic conditions that may also have an impact.

If you’re thinking of buying, selling or investing in the new year, make sure to reach out to a reliable local agent who can help you to form a strategy that reflects your personal goals.

For more information on the property market and advice on buying or selling your home, contact The Professionals today.