National housing values have grown 22.1% in 2021, and there are two capital cities and one region that are not ready to slow down just yet. Can you guess where?

The most recent CoreLogic data reveals there are two-speed housing situations emerging across the country, with prices in Sydney (+0.3%), Melbourne (-0.1%) and Perth (+0.4%) slowing down in December 2021. On the other hand, Brisbane (+2.9%) and regional Queensland (+2.4%) are set to defy 2022 slowdowns, with CoreLogic saying there is “no evidence of their growth slowing just yet.” The monthly rate of growth for each of these regions reached a new cyclical high in December.

Housing affordability is less challenging in Brisbane and Adelaide. Advertised stock levels remain remarkably low and demographic trends continue to support housing demand.

Hobart (+1%), Canberra (+0.9%) and Darwin (+0.6%) meanwhile performed smack bang in the middle of the pack during December.

What is Causing the Slowdown in Other Markets?

The annual housing value gains in Australia’s two biggest cities – Sydney (+25.3%) and Melbourne (+15.1%) – were stellar in 2021. But momentum has slowed sharply, with both cities recording their softest monthly reading since October 2020.

This slowing trend can be partly explained by a bigger deposit hurdle caused by higher housing prices alongside low-income growth, as well as negative interstate migration. A surge in advertised listings through December has also been a key factor in taking some heat out of the Sydney and Melbourne housing markets.

The slower conditions across the Perth housing market may be more attributable to the disruption to interstate migration caused by extended closed borders.

What Can We Expect in 2022?

For starters, housing stock is very low across regional Australia with advertised stock levels finishing the year 35.9% below the five-year average. This compares to combined capital cities seeing stock 14.2% below the five-year average.

The regional markets, especially those with a lifestyle appeal, will likely continue to benefit from higher demand as removed working policies are more normalised and demand for holiday homes remain strong.

As interest rates begin to bottom out and affordability constraints extend to regional markets, these housing markets may also move into a downswing phase in 2022. And whilst sellers held the upper hand at the negotiation table in 2021, buyers are expected to regain some leverage in 2022. This is because the average time properties spend on the market is beginning to increase, while auction clearance rates are trending down.

Need Help with Your 2022 Purchase?

The juxtaposition of higher housing values against low-income growth has resulted in a higher barrier to entry. If you are looking to purchase in 2022, it is important to have the right people on your side. A buyer’s agent will provide clear and objective guidance, market intelligence and experience to support your home buying journey. Using the skills and knowledge of a buyer’s agent can help find the right property for you in the current property market. If you would like to find out how we can help you, contact us for an obligation-free consultation today.


Purple Avenue is a Sydney based Buyers Agency. We provide expert guidance and advice to help you make the most informed decisions, and our buyer’s agents will be with you every step of the way to ensure the process of buying your home is as smooth and stress-free as possible.

Disclaimer: This article contains information that is general in nature. It does not consider the objectives, financial situation or needs of any person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether in business, health or financial.