Jan 31, 2022
2021 was a truly unusual year.
After 2020, a year fraught with the effects of the global
COVID-19 pandemic that wreaked havoc on world markets, forcing
families into their homes with lockdowns and businesses to shutter
their doors, 2021 saw the advent of safe & effective vaccines
and despite the lockdowns experienced in our Southeastern states,
2021 was an amazing year for anyone involved in property.
For many people, their home or investment properties earned more
than they did as property values reached new highs and real estate
records were broken.
2021 has rewritten the property record
From property price growth to interest rates, to new home
buyers, to refinancing – no matter which way you look records are
To discuss these and which new records we think will be set in
2022 I’m joined by my business partner Brett Warren - national
director of the Metropole Properties.
One of the records that must have been broken is the
extraordinarily strong market appetite for property, but let’s dig
into a few more records that have been shattered.
- Prices rose at the fastest pace in more than three decades
- In 2021 we experienced a property boom, the strength of which
no one envisaged at the beginning of the year.
- The level of price growth has been the fastest in more than 3
decades, but in real terms, it’s the 3rd fastest in a century.
- However, not all property markets will continue growing
strongly moving forward.
- We’re in for a 2-tier property market moving forward.
- Properties located in the inner and middle-ring suburbs,
particularly in gentrifying locations, will outperform cheaper
properties in the outer suburbs.
- Australians became wealthier than ever before
- Australian households just keep getting wealthier.
- A combination of surging property prices and solid share market
gains saw total Aussie household wealth grow 4.4% or $590 billion
in the September quarter.
- Wealth is up 20.2% on a year ago – the strongest annual gain in
11 1/2 years.
- And the number of Australian millionaires is expected to grow
to 3,100,000 by 2025.
- Mortgage rates hit historic lows
- In 2021 low interest rates and the easy availability of finance
spurred record demand for property pushing prices higher
- New lending and refinancing also hit an all-time high – I guess
that’s another record that was set.
- A record number of new listings of properties for sale
- The number of properties listed for sale on realestate.com.au
hit a historic low in June 2021.
- However, as lockdowns lifted and restrictions eased, new
listings of property sales come to 22.8% in the last three months
of the year.
- This is made for a robust spring selling season with new
listings finishing 19.2% higher than the five-year average.
- Demand for housing hit record highs
- 2021 was a year that many Australian families upgraded their
homes while a record number of Aussies became first home
- The combination of low interest rates, the impetus from
shifting lifestyle preferences, an influx of ex-pats, low supply of
properties for sale, forced savings, and government support
measures have all fuelled Australia’s insatiable appetite for
property to historic highs for much of this year.
- Properties sold at record speed across the country.
- With multiple buyers keen to purchase the limited number of
good properties for sale, many were forced to make quick decisions
and, in some cases, pay a premium to purchase their property.
- As for the records broken - in November, the median number of
days a property was listed on realestate.com.au before it was sold
was 30 days, a historic low.
- Property sales volumes soared
- An estimated 614,635 properties changed hands in the past 12
months, the highest level in almost 18 years.
- In fact, in November property transactions were 32.6% above the
decade annual average.
- Rentals finally rose
- After several years of slow rental growth, in the year to
November Australian rent for using Chris 9.4% which was the
strongest and you will appreciate any rent since January 2008.
- Capital cities experienced a net loss of people
- Australia’s closed borders put a halt to immigration in 2021,
but tight borders didn’t stop Aussies from moving house.
- In the March quarter of 2021, data from the ABS showed our
capital cities recorded a net loss of 11,800 people.
- This is more than double the decade average and the largest
quarterly loss on record.
- This was prior to the arrival of the delta variant.
- Demand for luxury property soared and the $3 million club
- While the value of most properties increased in 2021 the year
finished with the luxury end of the market outperforming.
- Australia’s $3 million suburb club doubled again in 2021.
- Demand for regional property soared, fuelling record-breaking
- One of the side effects of the pandemic and the resultant
lockdowns was that both net regional and interstate migration
trending above long run averages
- This resulted in 2021 being the year when combined regional
housing markets have outperformed, combined capital cities in terms
of price growth.
- And as the year ended this trend has reversed with our capital
Links and Resources:
Warren – National Director
Metropole Property Strategists
Get the team at Metropole to help build your
Click here and have a chat with us
Shownotes plus more here:
Guess how many property records were broken in 2021? With Brett
Some of our favorite quotes from the show:
“It was just too easy to let FOMO get in and make silly
decisions, cut corners, and not do your due diligence.” – Michael
“Almost anyone could look good last year, because if you bought
in the wrong location, it still went up 10%, and you thought hey,
look how smart I am!” – Michael
“Life is worthwhile if you try. It doesn’t mean you can do
everything, but there are a lot of things you can do if you try.” –
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