Invest
Aussies spent over $688bn on property in 2021
Spending on property in Australia increased by more than 50 per cent last year.
Aussies spent over $688bn on property in 2021
Spending on property in Australia increased by more than 50 per cent last year.
A new report has revealed Australian property sales last year soared 57.3 per cent to $688.7 billion, while the number of new home loans rose by 32.5 per cent.
Over 834,000 properties were settled across the country during 2021, an increase of 31.8 per cent compared to 2020, according to the report by PEXA Insights.
“In what has been a challenging time for many Australians amidst lockdowns and uncertainty, the property market has boomed with purchasers taking advantage of record low interest rates,” said PEXA Insights chief data and analytics officer Scott Butterworth.
“We also believe many consumers have been motivated to purchase more suitable housing to incorporate new working from home arrangements, which may have led to the significant increase in aggregate value of property settlements across the nation.”
Queensland saw the largest number of property settlements throughout the year with a total of 232,824, up 41 per cent compared to a year earlier, while the value of sales in the state grew 76 per cent to $158.5 billion.
Meanwhile, NSW recorded the highest aggregate value of sale settlements at more than $262 billion, up 54 per cent on a year earlier. It, however, experienced a slightly lower year-on-year growth in volume with an increase of 25 per cent to 228,657.
“Although nudged out of top spot by Queensland for the first time on record for the number of properties sold during a year, home buyers in New South Wales as a collective have spent approximately $76 billion more on property in 2021 than any other region,” said Mr Butterworth.
More than 220,400 properties were settled in Victoria during the past year, an increase of 28 per cent versus the year prior, after a drop in both volumes and values between 2019 and 2020.
“Consumers in Victoria have experienced more lockdown-related disruption than any other mainland state. However, the state’s property market has demonstrated strong resilience, posting an increase of 50 per cent growth in aggregate property value for 2021, coming second only to New South Wales,” Mr Butterworth said.
A total of 94,416 properties were settled in Western Australia, up 41 per cent, while the value of sales in the state rose 57 per cent to $51 billion. Growth was also recorded in South Australia, with a 27 per cent rise in settlements to 57,615 and a 47 per cent increase in value to $31 billion.
PEXA Insights found that a total of 617,338 new loans were taken out during the year, with non-major banks dominating for much of the year.
“Despite the major banks winning market-share through 2020, non-major banks have managed to improve their position and arm-wrestle market share in new loans back away from the majors in 2021,” said Mr Butterworth.
“With interest rate movement assumed by many commentators to be imminent, the battleground for both new loans and refinances is expected to heat up during 2022.”
The Reserve Bank has hinted at the first rate rise taking place in 2023, while some major banks have tipped a rise later in 2022.
Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more
Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more
Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more
Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more
Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more
Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more
Property
HSBC forecasts 2023 house price decline of up to 10%
The firm had previously predicted a modest rise for house prices next year. ...Read more
Property
Perth house prices continue climbing to a record high
While growth may have come to an end in Sydney and Melbourne, Perth house prices are still on the rise. ...Read more
Wrapping up an eventful 2021
Listen now
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more
Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more
Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more
Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more
Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more
Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more
Property
HSBC forecasts 2023 house price decline of up to 10%
The firm had previously predicted a modest rise for house prices next year. ...Read more
Property
Perth house prices continue climbing to a record high
While growth may have come to an end in Sydney and Melbourne, Perth house prices are still on the rise. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
