Despite the lasting effects of the global pandemic which struck real estate markets limiting its growth in an ever-changing climate, 2022 is predicted to see much more growth. Over the past year, Sydney property markets have witnessed approximately 24% growth in comparison to Melbourne’s 15% growth, and Brisbane’s 20% growth. The gap between the median house and unit value in Sydney is now close to $500,000. A new global report has singled out Sydney’s property market as being “overvalued” and on the brink of collapse over a “bubble risk”. International investment bank UBS released its Global Real Estate Bubble Index earlier this month which analyses residential property prices in 25 major cities around the world.

Driven by the gradual easing of the pandemic restrictions leading into 2022, Melbourne has seen a large surge in property listings and auction volumes due to the overall increase in confidence in the property market.
However, growth in the past month has slowed down a bit, due to the abrupt upsurge in new listings and affordability pressures weighing down the city’s market. SQM Research’s Christopher’s Housing Boom and Bust Report 2022, forecasts that dwelling prices across the nation will then drop in the second half of 2022, most likely as a result of further intervention by the Australian Prudential Regulation Authority (APRA) banking regulator The report said the biggest price shrinkages would be felt in the Sydney and Melbourne property markets, which Mr Christopher believed were the most overvalued and, historically, the most susceptible to home lending restrictions.

The property market in Brisbane has accelerated in recent times, sustaining a high level of demand throughout the year leading into early 2022. Brisbane real estate has been buoyed by steady population growth driving demand and underpinned by good economic fundamentals including jobs creation and a low unemployment rate. Queensland has now become the number-one destination for internal migration, taking over from Victoria and overseas migrants are starting to see Brisbane as the place to be, bringing 12,847 residents into the city.

While powered by the drastic uptake in remote working and extremely low interest rates in the past two years, interstate migration will continue to fuel dwelling demand in the Gold Coast. Median house price growth is expected to rise by 19% over the three years to June 2024, taking the median house price to $915,000. The median unit price is set to follow a similarly strong pattern as the prospect of returning international travel attracts investors to the market over the next three years. Median unit prices are anticipated to grow by 18%, reaching $608,000 by June 2024.

Perth’s property market decline looks to be slowing in 2022, but it will be a long, slow grind before property investment recovers from a post-mining boom slump, according to experts. Industry analyst and economic forecaster BIS Oxford Economics’ recent report points to an overall slowdown in the Australian property market.