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by | May 9, 2022 | property

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Dear Fellow Property Investor,

In further proof Australia’s real estate market has lost the plot, new figures have revealed the biggest property price jump on record.

Aussie property prices have hit a new record, with the value of homes in our capital cities skyrocketing by 23.7 per cent over the past year.

That’s according to the latest figures out of the Australian Bureau of Statistics (ABS), and it represents the biggest annual jump since records began in 2003.

All eight capitals recorded a significant rise in the December quarter, with Hobart up 29.8 per cent, Canberra 28.8 per cent, Brisbane 27.8 per cent, Sydney 26.7 per cent, and Adelaide at 23.9 per cent.

Melbourne jumped by 20 per cent, representing the largest annual rise since the June quarter 2010, while Perth rose 15.7 per cent and Darwin 13 per cent.

“House price growth continues to outpace price growth for attached dwellings. House prices rose 27.5 per cent through the year, while prices of attached dwellings rose 14.0 per cent,” ABS Head of Prices Statistics Michelle Marquardt said.

In the December quarter 2021, residential property prices rose 4.7 per cent. The strongest quarterly price growth was recorded in Brisbane at 9.6 per cent, followed by Adelaide at 6.8 per cent, Hobart at 6.5 per cent and Canberra at 6.4 per cent.

“Results were consistent with a range of housing market indicators,” Ms Marquardt continued.

“New lending commitments for housing rose to a record high value in the December quarter 2021.

“Days on market fell and sales transaction volumes increased. Record low interest rates and strong demand have continued to support growth in property prices.”

The total value of Australia’s 10.8 million residential dwellings rose by $512.6 billion to $9901.6 billion in the December quarter 2021.

The value of residential dwellings has risen $2015.1 billion since the December quarter 2020. The mean price of residential dwellings in Australia was $920,100, up from $876,100 in the September quarter 2021.

However, the stats come amid frenzied speculation that house prices are set to drop dramatically in the near future.

Last month banking giant Westpac predicted prices were likely to stall across the nation by May, and then drop by the end of the year, before a sharp decline in the years ahead.

The major bank has predicted that overall house prices will rise by just 2 per cent for the whole of 2022.

It’s a stark difference to the whopping 22 per cent increase in property prices in 2021 – the strongest annual growth since 1989.

Westpac has further predicted Australian house prices will fall by 7 per cent in 2023 and by a further 5 per cent in 2024 in its latest report.

“Housing will be ‘collateral’ damage in the RBA’s efforts to keep inflation on target over the medium term,” warned Westpac senior economist Matthew Hassan earlier this year.

Mr Hassan also highlighted that the signs of a slow down were already on show, even though “extremely low levels” of stock still plagued the market.

‘Good news for all homebuyers’ as property listings surge “Auction markets softened a touch into year end and look to have begun in 2022 with a similar tone,” he said.