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Another year of change as buyers set to make a move in 2022

The Announcement:

The impact of Covid-19 will continue to prompt many Australians to make major life changing decisions, including where they live, over the next year, according to LJ Hooker’s ‘What’s in Store for 2022?’ Trends Whitepaper.

It has identified four main influences that will drive property prices and sales over the coming 12-months. These driving factors include the popularity of regional coastal living, the return of international visitors and the demand for house and land packages.

LJ Hooker Group’s Head of Research Mathew Tiller said that the demand for property is expected to remain constant next year.

“In 2022, we expect to see continued property price rises in both metropolitan and regional areas, but it won’t be at the same pace recorded over the past 12 to 18 months. The tightening of mortgage lending criteria and the speculation of interest rate rises will slow the rate of growth.

“With restrictions now easing in every state, a larger volume of listings is expected over the course of 2022 as homeowners start to feel more comfortable with the notion of selling. This is positive news for house-hunters who have struggled with high competition and lack of choice during the pandemic.”

The number of new properties listed for sale over the past four weeks in NSW and Victoria increased by 35 and 43 per cent respectively compared to this time last year. While in Queensland, South Australia and Western Australia new listings rose by more than 20 per cent compared to 12 months ago.

“With almost two years passing since the initial lockdowns, people have had time to take stock, reassess their priorities and are taking action.

“2022 is set to be another year of change. Whether that means we will see more people relocating to the coast, making a tree-change, upgrading to a larger home, moving into the city centre, or investing, remains to be seen.”

Since Covid-19, regional property markets across the country have seen significant demand, with most regional markets outperforming capital city markets, bar South Australia.

“The regional trend has been driven by both intra and interstate migration as city dwellers reassess their lives following lengthy lockdowns.

“Seaside living will remain popular with the race on to find affordable alternatives while not compromising on lifestyle. Finding the next Byron Bay, which experienced a 47 per cent increase in prices over the last 12 months, and whether it is possible to replicate the town’s phenomenal increase in value is a trend we are likely to see explored in 2022.

“Australia’s reopening to international tourists, students and professionals will help bring people back to our capital cities, positively impacting investors and rental markets.

“As people continue to return to a more normal way of life, confidence will increase in market sectors that have endured the brunt of border closures, particularly inner-city apartments.

“We are already seeing improving rental vacancy rates as restrictions ease and Australians adapt to a new normal. This trend is expected to continue into 2022 as our cities start to awaken. Investors are likely to be the biggest beneficiary from the return of international visitors to our shores.”

High net-worth foreign buyers are expected to also return to the market in 2022 – along with returning expats – fuelling demand for prestige property.

“Premium properties are expected to continue fetching eye-watering prices as demand for high-quality, luxury living and the demand for more space continues in 2022.

“We could see a shift from wealthy Chinese to affluent Indian buyers targeting the upper end of the market. Australia has a large Indian population in every capital city, and it is expected that strong buyer activity from the sub-continent will be an emerging trend for luxury sales.”

With many first-time buyers and young families facing tough competition for established homes, many will opt to build instead throughout 2022.

“Low-interest rates and increased government incentives have seen first-time buyers and young families opt to build their own dream home rather than face tough competition for an existing one.

“House and land packages are growing in popularity, and they have allowed those unable to buy into more established suburbs an ability to get a foothold onto the property ladder. While prices are increasing, house and land packages can be secured on a small deposit adding to their appeal for those looking to upgrade but happy to wait for building to be completed,” concluded Mr Tiller.

Source: LJ Hooker

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