Invest
Double-digit price growth to stick around as ‘property boom’ arrives
According to leading indicators, Australia’s property boom officially began in November, following several slow months on the back of the COVID crisis, with double-digit price growth already logged across Australia.

Double-digit price growth to stick around as ‘property boom’ arrives
According to leading indicators, Australia’s property boom officially began in November, following several slow months on the back of the COVID crisis, with double-digit price growth already logged across Australia.

Figures released by the Australian Bureau of Statistics last week revealed a surge in loan commitments for investor housing, with a 6 per cent monthly increase and 3.9 per cent yearly growth in November.
Overall, the ABS reported a record-high total value of new loan commitments for housing, with an extraordinary yearly growth of 23.7 per cent, with owner-occupier home loan commitments leading the upward charge with a 31.4 per cent rise compared with November 2019.
And according to Propertyology’s head of research, Simon Pressley, home loan activity is a leading indicator for the market.
The all-time record-high home loan activity is underpinned by cheaper and more accessible credit and a strong demand in property that is outstripping supply, Mr Pressley explained.
“More home loans means more properties being purchased. More buyers equals more competition and upward pressure in asset values,” he said.
Nationally, there were only 272,999 properties listed for sale at the start of January 2021, the lowest on record. For perspective, this is 6 per cent fewer than a year earlier when property markets in most of Australia were heating up, Mr Pressley noted.
According to his predictions, and on the back of strong owner-occupier activity, property markets in large parts of the country are now likely to run at double-digit price growth.
“This is occurring at a time when Australia’s population growth has taken a significant dip and the national unemployment rate is close to 2 per cent higher than a year ago,” Mr Pressley said.
“There’s no question that international border restrictions and things like JobKeeper caused unstable concern for some Australians. But, from a property market perspective, these are two tiny pieces of a very large jigsaw puzzle.”
Right now, he said, “the full picture is 95 per cent blue sky with a couple of small white clouds”.
Mr Pressley also believes that the property market is likely to benefit from record-low rental supply.
“Australia is now in an era of accelerated rates of home ownership and wealth creation. This will become Australia’s biggest property boom for a generation,” Mr Pressley said, adding that the “best opportunities” for capital growth and cash flow lie beyond the capital cities.
About the author

About the author


Property
Poor wage growth could impede home price growth
With wages growth at record-low levels, a property expert has warned that continuing low and flat wages could impede home price growth. ...Read more

Property
Negotiating a lower interest rate on your property loan
The banks are customer hungry, meaning they’re willing to offer increased discounts to new customers and apply these discounts to existing customer loans, a mortgage broker has said. ...Read more

Property
How to determine the real value of a property
With various factors affecting market value and pricing, can one truly predict what buyers will pay for properties? ...Read more

Property
House prices tipped to soar 20% in 2 years: Westpac
House prices in Sydney are tipped to grow by 20 per cent over the next two years, and by 18 per cent in Melbourne, as a leading economist predicts strong economic growth following the rollout of the C...Read more

Property
5 tips to unearth the next property hotspots
A property expert has bullishly claimed that property hotspots are a “complete myth” that almost guarantees buyers will pay top dollar, and has instead urged buyers to seek out the “warm spots...Read more

Property
Top 10 inland rural towns to invest in
While it’s become apparent that regional housing markets have stolen the spotlight, having outpaced their capital city counterparts in 2020, new research has shown that inland rural towns have also ...Read more

Property
Where to buy under $300k
A positively geared property with high capital growth potential does not necessarily need to carry an astronomical price tag, an expert has said, with new market entrants able to land a home for under...Read more

Property
‘Great Australian dream’ of owning a home lives on amid COVID
Most Australian investors and home buyers were largely undeterred by the events of 2020, remaining eager to push through with their investment plans, a new survey has found. ...Read more

Property
Poor wage growth could impede home price growth
With wages growth at record-low levels, a property expert has warned that continuing low and flat wages could impede home price growth. ...Read more

Property
Negotiating a lower interest rate on your property loan
The banks are customer hungry, meaning they’re willing to offer increased discounts to new customers and apply these discounts to existing customer loans, a mortgage broker has said. ...Read more

Property
How to determine the real value of a property
With various factors affecting market value and pricing, can one truly predict what buyers will pay for properties? ...Read more

Property
House prices tipped to soar 20% in 2 years: Westpac
House prices in Sydney are tipped to grow by 20 per cent over the next two years, and by 18 per cent in Melbourne, as a leading economist predicts strong economic growth following the rollout of the C...Read more

Property
5 tips to unearth the next property hotspots
A property expert has bullishly claimed that property hotspots are a “complete myth” that almost guarantees buyers will pay top dollar, and has instead urged buyers to seek out the “warm spots...Read more

Property
Top 10 inland rural towns to invest in
While it’s become apparent that regional housing markets have stolen the spotlight, having outpaced their capital city counterparts in 2020, new research has shown that inland rural towns have also ...Read more

Property
Where to buy under $300k
A positively geared property with high capital growth potential does not necessarily need to carry an astronomical price tag, an expert has said, with new market entrants able to land a home for under...Read more

Property
‘Great Australian dream’ of owning a home lives on amid COVID
Most Australian investors and home buyers were largely undeterred by the events of 2020, remaining eager to push through with their investment plans, a new survey has found. ...Read more