Australian house prices are forecast to rise 17% on average in the capital cities this year, according to ANZ Bank.
Sydney and Perth housing prices are tipped to increase 19% in 2021, followed by Hobart (18%), Melbourne and Brisbane (16%) and Adelaide (13%), the research found. ANZ previously predicted a 9% national rise this year.
The upgraded forecast comes amid strong property markets in most parts of the nation. Pent-up demand after last year’s lockdowns has helped to fuel the boom, with many residents looking for larger accommodation to work from home.
“What we’ve seen is a combination of quite strong demand and relatively low supply,” ANZ senior economist Felicity Emmett says.
The latest forecast is in stark contrast to predictions made by economists this time last year that prices would fall between 10% and 20%.