Home Insights More Proof 2021 Was a Bumper Year for Property Sales in Australia

More Proof 2021 Was a Bumper Year for Property Sales in Australia

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Compared to 2020, provisional sales of residential real estate last year increased by 40.1%.

Getting the complete set of sales data is notorious for being very slow. Therefore, at realestate.com.au, we would like to see timely measurements of sales volume, which is the sale advised by the agents of the properties available on the site.

These are not completed, so we call them pre-sale, but they provide a timely indicator of transaction activity.

Nationwide sales in 2021

According to national preliminary data, real estate sales in 2021 increased by 40.1% from 2020. Pre-sale in 2020 increased by 12.3% compared to 2019.

Sales volume despite the still blockade of COVID-19 in 2021 Throughout the month, it was significantly higher than the previous year.

Looking at the share of total pre-sale by price point in 2020 compared to 2021, the shift from low-priced properties to more expensive properties is highlighted.

Of course, this is the product of both low interest rates that encourage people to spend more on housing, followed by higher prices that reduce the supply of cheaper housing stock.

Sales share of properties priced below $ 250,000, $ 250,000 to $ 500,000, and $ 500,000 to $ 750,000 decreased year-over-year.

At the same time, higher prices increase their share of total sales throughout the year.

With overall pre-sales up 40.1% between 2020 and 2021, it’s not a shock to see year-over-year sales growth in most price ranges. However, sales of less than $ 250,000 are a clear exception.

Even more obvious is the fact that sales of properties over $ 2 million have seen the largest increase.

Sales have more than doubled year-on-year in the $ 2 million to $ 2.5 million, $ 2.5 million to $ 3 million, and $ 3 million and above price ranges, respectively.

The price range of more than $ 3 million, which accounts for 2.2% of annual sales, showed the largest increase of 122.5% year-on-year.

Sales volume of the entire region of the capital and other states

All capital and other state regions recorded an increase in pre-sales in 2021 compared to 2020.

In the Northern Territory region, sales in 2021 were relatively low (a little over 500), the largest year-over-year increase (75.1%).

Melbourne was up 70.5% and Western Australia was up 46.6%.

Hobart (12.7%) and Tasmania (14.7%), along with Victoria (21.4%), recorded the smallest year-on-year increase in pre-sales.

About one-fifth of 2021 sales were generated in Melbourne. This happened despite Melbourne’s longer-term blockade and a significant drop in sales.

However, these dips were not as steep as they were at the 2020 blockade.

In addition to Melbourne, Brisbane, Queensland and Western Australia also increased their share of annual sales, but remained flat or declined elsewhere.

The data show that Queensland’s real estate demand has increased due to the significant increase in migration to Sunshine over the past year.

All SA4 regions recorded an increase in annual sales nationwide

Of the 88 Statistical Region Level 4 (SA4) regions across Australia (the largest territory), each recorded a year-on-year increase in reserve sales between 2020 and 2021.

Of the 10 SA4 regions with the highest year-over-year sales, eight were in Melbourne and the other two were regions NT and Ipswich west of Brisbane.

The list of 10 SA4 regions with the least year-over-year growth in pre-sale was much more complex, with 8 regional markets.

Three of the eight were in New South Wales, two in Victoria and Tasmania, and one in Western Australia.

What was the driving force behind bumper year sales?

With the combination of record low borrowing costs, restricted mobility, continued telecommuting, and government financial support, households are willing to devote more of their income to housing.

As a result, sales of high-priced properties in particular increased significantly, followed by higher home prices.

2022 outlook

Price growth is expected to slow in 2022, and given this, it is unlikely that this year’s sales will increase dramatically as in 2021.

There are several reasons to expect a strong year for sales, even though price growth is expected to slow.

Floating rates have remained at record lows, and the sharp rise in prices over the past year means that many homeowners have significant capital.

The list is very difficult to predict, but the fact that future blockades are unlikely should provide vendors with greater confidence in listing properties for sale.

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