When will the boom stop? Westpac forecasting 20% house prices rises over the next two years
- Westpac is predicting 20 per cent property price rises over the next two years
- Australia’s second biggest bank forecasting 10 per cent rises in both 2021, 2022
The Westpac bank is predicting a 20 per cent surge in Australian property prices during the next two years.
Australia’s second biggest bank said record-low interest rates of just 0.1 per cent would see capital city real estate values rise by 10 per cent in both 2021 and 2022.
The Reserve Bank cut interest rates to a record-low of 0.1 per cent in November and Governor Philip Lowe has repeatedly declared the cash rate will not increase until 2023.
Westpac economists Bill Evans and Matthew Hassan said all-time low interest rates and a strong recovery from last year’s Covid recession would turbocharge the housing market.
‘The bottom line is that Australia’s housing upturn now has strong momentum that looks to be lifting further and will remain well supported by monetary conditions and an improving economic backdrop,’ they said.
Sydney and Brisbane house and apartment prices were expected to rise by 10 per cent in 2021 followed by another 10 per cent next year.
Perth was expected to do even better this year with property price increases of 12 per cent in 2021 before a more modest 8 per cent increase in 2022.
The Westpac bank is predicting a 20 per cent surge in Australian property prices during the next two years