Bluestone Blog

In 2021 Australia’s property market reached new heights with national property values skyrocketing 22.1%. Record-low interest rates, a shortage of supply, and government stimulus packages are just some of the factors which led this remarkable growth not seen since the late 1980s.

When the COVID pandemic hit, the doomsdayers and naysayers made bold predictions that Australia’s housing market was about to hit a swift downhill slide. Amid the merry-go-round of lockdowns, restrictions, mask-wearing and working from home, some property experts forecast hefty real estate price drops of more than 30%. But that prediction didn’t translate in 2021. In fact, it couldn’t have been further from reality.

The Australian property market surprised even the most experienced economists in the aftermath of COVID-19. House prices shot up against all expectations and what’s more, they are predicted to continue surging into the future.

When we take a look at investor statistics within the Australian property market throughout the last year, we see the lowest participation rate on record. The pandemic affected Melbourne more than any other capital city in Australia in 2020, but what does that mean for potential purchasers or investors in 2021?