ANZ Tips 17% Rise In 2021

Australian house prices are forecast to rise 17% on
average in the capital cities this year, according to
ANZ Bank.

Sydney and Perth housing prices are tipped to
increase 19% in 2021, followed by Hobart (18%),
Melbourne and Brisbane (16%) and Adelaide (13%),
the research found. ANZ previously predicted a 9%
national rise this year.

The upgraded forecast comes amid strong property
markets in most parts of the nation. Pent-up
demand after last year’s lockdowns has helped to
fuel the boom, with many residents looking for larger
accommodation to work from home.

“What we’ve seen is a combination of quite strong
demand and relatively low supply,” ANZ senior
economist Felicity Emmett says.

The latest forecast is in stark contrast to predictions
made by economists this time last year that prices
would fall between 10% and 20%.