2021 Predictions for Property
Is the only way ‘up’?
It’s been a rollercoaster ride of a year and whilst many are still predicting doom and gloom for the future, property researchers SQM have released a rosy forecast for Property in 2021.
Their model proposes four different scenarios. Each scenario hinges on similar factors such as interest rates, levels of continued government stimulus, jobkeeper extensions, and a vaccine rollout.
The base case scenario one, predicts large property price increases across Australia, up to 11% in Sydney and even more in Perth. Even the alternative scenarios with more conservative outcomes show modest price gains across most cities.
Why is this so?
Louis Christopher, Director of SQM says our federal government is treating our property market as too big to fail and has thrown ‘the kitchen sink’ at it to ensure growth.
He says an unprecedented combination of low interest rates, and government stimulus, along with the rolling back of responsible lending laws and the removal of stamp duty in favour of a land tax, will serve as rocket fuel for our housing market and have already contributed to the last twelve months uplift in prices in most cities despite the pandemic.
What do you think of SQM’s predictions? Do you have any theories or predictions of your own? Where do you think we’ll be this time next year? I’d love to hear your thoughts so please leave your comments below, about where you think we’re heading in 2021…