ANZ tips Australian capital city house prices to rise 17% in 2021

Property Prices

House prices in Australian capital cities have been tipped by ANZ to rise 17 per cent this year, to be headed by Sydney and Perth.

Those two capital cities in particular have been forecast to rise by 19 per cent in 2021 by the major bank.

Melbourne house prices are looking at rises of 16 per cent, similar to numbers expected in Brisbane, with Adelaide forecast to come in at 13 per cent.

ANZ say the first half of the year is expected to be the best, with the end to stimulus measures like JobKeeper and HomeBuilder eventually having an impact as well as higher fixed mortgage rates as the year rolls on.

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

Ms Emmett said she expects the Australian Prudential Regulation Authority to intervene with measures to put some brakes on house price growth heading into next year,

As a result, ANZ forecasts annual house price growth to slow to 6 per cent in 2022.



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