It’s no surprise that the Australian Property Market has seen insane price growth this year, even with many believing we were heading into a crash.
But what would Australian house prices been like if there was no pandemic?
Well new analysis has shown that house prices have risen well above what they should have if Covid-19 never happened.
Most capital cities were due for an upswing in 2020 according to a report from KPMG Economics, but with the Government initiatives and an ultra low interest rate, used to help starve off a potential crash, it’s actually boosted the market adding hundreds of thousands of extra dollars to property values.
Under KPMG’s modelling, without the pandemic, house prices in Sydney would have risen 13% to hit $1,119,000 by 2023. Now they’ll rise 26% to $1,244,000.
Brisbane’s house prices would’ve increased by a modest 9% to $601,000 instead, they’ll rise a massive 20% to $661,000.
And Melbourne would have risen 19% to $905,000 instead, they’ll now rise 24% to $940.000.
This is great news for our existing clients and anyone still considering if investing is right for them knowing they’ll be able to ride the rapid wave of growth over the next months with economics indicating that growth will continue to grow at this rate for some time to come.