According to REA Group, national property prices are predicted to rise by up to 9% in 2022. But which cities are tipped to lead the way in price growth this year?
National housing values grew a whopping 22.1% in 2022, and while things are expected to slow down throughout 2022, it isn’t over yet.
Especially so if you are a homeowner, the predicted property growth is 9% to 12% in Hobart, 8% to 11% in Brisbane, 6% to 9% in Adelaide and 6% to 9% in Canberra.
Brisbane and Hobart have the strongest price growth forecasts among the capital cities thanks to their low supply of stock for sale, heightened demand and relatively lower prices compared to Sydney and Melbourne.
Meanwhile, property prices are still expected to grow but just not as much as 3% to 6% in Perth, 4% to 7% in Melbourne and 5% to 8% in Darwin.
Perth has shown a stronger slowdown in price growth already relative to other capital cities, while the most expensive property prices in Sydney and Melbourne may increasingly see demand shift to more affordable housing markets.
2022 dwelling prices forecasts
Here is the predicted price growth for 2022 for each capital city:
- Sydney: 4% to 7%
- Melbourne: 4% to 7%
- Brisbane: 8% to 11%
- Adelaide: 6% to 9%
- Perth: 3% to 6%
- Hobart: 9% to 12%
- Darwin: 5% to 8%
- Canberra: 6% to 9%
- All capital cities combined: 6% to 9%
Why are property prices expected to slow down throughout 2022?
For starters, it is because buyers can expect more choices. Buyer demand peaked in August 2021 and a more balanced market is expected in 2022.
For vendors, this means that they may have to lower their price expectations and the increase in housing stock, should it continue, will likely contribute to a slowing of price growth in 2022. The lift in new listings should allow more buyers to find a home.
It is expected that there will be a smaller wave of buyers because prices have increased, rapidly pricing some buyers out.
As property prices are tipped to continue rising throughout 2022, it has never been a better time to get a buyer’s agent in your corner when it comes to securing your property purchase – be that your dream home or adding to your investment portfolio. If you have any questions or want to know more about 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.