When home prices in Australia went up in 2021, the news kept telling us that we were in a property boom. Investors who were afraid of missing out, invested in real estate more than they did before. Many investors started to hunt down commercial as well as residential properties. Now let’s dive into the landscape of real estate 2022.
Commercial Real Estate Shifts
This reduced the quantity of homes being sold which has slowed its growth. Still, more people are looking to buy homes and good investment properties than there are properties for sale. Also due to the high demand for commercial spaces, the need for commercial real estate also increased. And this will be keeping home values powerful in 2022.
Rise in Property Values
Numerous factors influence the value of a property, but the most significant are consumer confidence, low-interest rates, economic expansion, and a favourable supply-to-demand ratio. As we all know, there are a variety of real estate markets in Australia, but property values are expected to rise significantly throughout 2022.
Adoption of Technology
After the hit of the pandemic, most of the sectors adopted technology in interesting ways. And talking about the real estate industry, we can see the dawn of digitalization. Virtual tours, digital transactions and online property searches will be the major aspects contributing to the growth of real estate in 2022.
Growth of Multi-Family Homes
The growth of multi-family homes is driven by various factors such as population growth, changing demographics and the increasing number of investors. However, the prime factor would be the increased demand of rental accomodation. Multi-family homes are affordable and best-suited for the families & the milennials. This can lead to the significant growth of multi-family homes.
However, certain aspects of the market will be suffering from affordability concerns, as will city apartment towers and housing near universities, until we receive migrants and international students that the Australian government is calling to return.
But overall, Australia’s low mortgage rates continue to support the country’s reasonably solid home price increase.
