The year 2020 brought many changes with it due to the COVID-19 pandemic, and as a result the economy of the world started to fluctuate. The growth of the economy has been sluggish from the time the world experienced a major crisis in 2020 and you can expect many changes in the property market in Australia in 2021.
Here are some of the possible predictions of the property market in the year 2021 in Australia.
Chances of the Competition Boosting in a Non-Bank Lending Sector
The expectation of lower capital growth will automatically result with lower expectation of the debts and equities. There are enough borrowers in the world because of the low economy, and they have even started to consider the available help from non-bank lending sectors as well.
Urbanisation is Kept on Hold
The rate of productivity in the cities have resulted in an arguable condition and this factor has resulted in causing a full-stop in the urbanization of small cities. Due to the pandemic, the small cities and villages have become a kind of engine rooms and have even been known to maintain the global and national economy as well.
Overseas Investors Are Driving the Market
Overseas buyers of the properties are suggested to increase their major acquisition share, because of the issue of less capital growth and risk of income.
Improvement in the Ongoing Social Infrastructure Projects
With the help of the low interest rate, the government is planning to recover the economic status of the continent with the help of the ongoing projects and infrastructures. The best way to do so is with the help of the transportation services, and hence the government is seeing to it that the rail lines between many states are improved.
Property Market Future
It is noticed that a drastic reduction in the company sales from the month of March to September has resulted in causing many problems in the property market as well. The rate for properties such as houses in different locations has increased from 4% to 7%.
Here are some of the reasons that are causing the property rate to rise drastically.
- Home buyers are coming back the first time
- The owners are continuing with the low mortgage rates
- There are not many houses available for sale
- The wonderful response that the Australian government planned for COVID-19 pandemic and the transmission.
- Slow reopening of the businesses, so that there is a sense of optimism in the people, after suffering from the effects of pandemic.
- Due to the severe employment threat, the job-keeper wage subsidy is mitigated.
The house rents in the cities increased up to 0.7%, and the rent to the units dropped drastically up to -0.6%.
Unemployment Rate Decreased
When compared to the rate of unemployment rate during the months of March to September, the unemployment rate has decreased in Australia. The studies have shed light on the fact that the rate of employment has increased up to 43,000 to 1,15,000.
To conclude, the world has started recovering with baby steps, after the COVID-19 pandemic. However, some fields are still in slow recovery mode and one of such fields is property development.