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Australia’s property prices smash records in 2021 with fastest growth on record

Australia’s property market has surged through a record-breaking 12 months as prices rose at the fastest year-on-year rate in history.
Domain’s End of Year Wrap for 2021 has revealed that in 2021, Aussie house prices rose an eye-watering 21.9 per cent, the fastest annual rate of growth on record.
More than 446,000 houses were sold in 2021 and more than 144,000 units were sold, both remaining on the market for the shortest time in more than half a decade.
Domain’s Chief of Research and Economics Dr Nicola Powell said 2021 will be remembered as the year that radically defined the way Australians use – and prioritise – what they want in their properties.
“The challenge of grappling with a global pandemic shifted buyer priorities, placing a greater emphasis on the space in which we reside, this spurred purchases and brought forward decisions,” Dr Powell said.
“Ultra-low home loan rates, government stimulus, rebounding economic conditions, returning expats and improved household savings became the perfect combination of factors for extraordinary price growth and activity in 2021.”
The highlight numbers of 2021 are nothing short of staggering.
The most expensive sale of the year was the penthouse of 163 Castlereagh Street in Sydney, which sold for an eye-watering $60 million.
Three of Australia’s capital cities in Sydney, Melbourne and Canberra now boast a median house price of over $1 million, and the median capital city price nationwide is also closing in on seven figures.
According to Domain, there is hope for buyers desperate to enter the market: thanks to booming conditions, many homeowners erring about selling their home are being enticed by record prices.
“Sellers are now being enticed by record prices while tighter lending and affordability constraints have put a slight sting in buyer demand,” the report reads.
“That means the year is closing in a different position to the start, with new listings coming to market quicker than they are being sold.
“While it remains a sellers’ market, slowly the market is starting to tip in buyers’ favour.”
Looking ahead, 2022 is tipped to remain positive for homeowners while not replicating the near-insatiable growth of 2021.
“Buying opportunities are looking brighter for 2022. With new listings to remain strong, particularly over late summer and early Autumn,” Domain notes.
“This will continue to bring the total homes for sale into a ‘normal realm’.
“This additional choice, as well as tighter lending reducing buyers’ leverage and wages growth not keeping pace with 2021 price growth, prices won’t rise at the same sweltering pace as in 2021.”

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