Top 3 residential property trends in 2021 and what lies ahead in 2022
As we welcome in the new year, I wanted to reflect on the top three property trends from 2021 and look forward to what lies ahead for the SEQ Residential Market in 2022.
2021 was the year for residential property with some landmark sales and record growth across the nation, specifically here in South East Queensland.
Within the frenzy of market activity, record sales and transaction volumes some clear and interrelated trends emerged.
Top 3 Property Trends from 2021
1. FOMO
The fear of missing out has been a large driver in the significant upswings in the residential property market across Australia. Everywhere you look and listen – social media, newsprint, television and radio there are stories about record sales in a suburb, properties that have sold $300,000 above the reserve. It is only human nature to want to be part of this and has kept the market roaring along in 2021.
2. PRESTIGE MARKET SURGES
The prestige house market has been as strong during 2021 as any time over the last 15 years. Record prices are being achieved in most locations across Australia with record low-interest rates encouraging buyers to go above and beyond when they are making their purchase.
3. EVERYONE WANTS A HOLIDAY / COASTAL HOME
The two points above have combined for a significant driver for wanting to own a place on the coast or in tree change areas. Median house prices in popular tourist locations have soared during 2021. The question has to be asked what happens when interest rates start to rise as they will in late 2022 into 2023 and international borders open.
What lies ahead for 2022?
Hear from Geoff Duffield as he provides a future focussed update on the SEQ residential property market.
The demand for properties in SEQ is set to continue into the first 6 months of 2022 driven by low-interest rates, good employment numbers, and a healthy economy.
The supply of properties however, which is already very restricted, may tighten further which has potential to drive prices even higher.
If the experts are correct and if the virus passes through the first half of 2022, market softening in this area is nowhere in the vicinity. If anything, the market may surprise on the upside.
This is looking to benefit the mid rim markets the most with the inner-city market now out of reach for many buyers.
With price increases of between 40 and 60 % over the last 2 years in our inner suburbs, affordability constraints should kick in and somewhat limit any future growth here. This in effect will push buyers to outer-suburbs or towards the strata market with an increase in the purchase of townhouses in prime locations for investment advantages.