House prices will rise in markets across Australis over the next two years, says leading real estate research analyst Simon Pressley, managing director of Propertyology. Supply, which was already low before Covid-19 hit, is falling while demand is steady, he reasons.
The market remains favourable given the low mortgage rates, support for first-home buyers, and “sensible” credit policies, he says.
“Savvy property investors understand three to six months of disruption is minor in the overall scheme of property ownership,” Pressley says. “If anything, it creates a small window of opportunity. After all, they are investing in the essential commodity of shelter. “I think the locations with the better property market outlooks are among select regional cities that offer a combination of sub $500,000 median house prices, a diverse local economy, nominal price growth during the last decade, and where the housing supply pipeline is contained.” He adds that it is crucial to understand that the influence of population growth on property prices is “grossly overstated”.