The continued rise of housing markets driven by owner-occupiers has prompted ANZ to upgrade its outlook for residential property. It is now tipping strong price rises over the next year, confirming similarly positive forecasts by Westpac and Commonwealth Bank. The bank’s senior economists Felicity Emmett and Adelaide Timbrell are predicting a strong 2021 for Australian housing, building on the price uplift experienced by most capital cities and regional markets this year.
“We now expect house prices at the national level to rise over the balance of this year,” they say. “Next year, we expect price gains averaging 9% across the capital cities.”
ANZ admits that its earlier forecasts of a 10% drop in house prices was incorrect. It’s now predicting housing prices in Perth are likely to jump 12%, Brisbane 9.5% and Hobart 9.4%. Sydney prices are expected to rise 8.8% but Melbourne prices will lag a little, with 7.8%. “The strength is largely being driven by owner-occupiers, with low interest rates appealing to buyers in secure employment,” they say.