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2021 has been a dynamic year for the Australian real estate and finance sectors as record-level dwelling price growth and lending conditions has seen demand for property at an all time high, with the growth expected to continue into 2022.

This article will dissect the key highlights for the real estate and finance sectors.

Real Estate.

2021 has been a year for the record books with large parts of Australia in lockdown and our international borders being shut.

One thing that has not been affected is residential real estate, with every capital city in Australia seeing a significant rise in house prices.

The total value of Australia’s 10.7 million residential dwellings rose by $487 billion over the September quarter bringing the total value to $9.259 trillion. This follows an increase of $596 billion over the June quarter, the highest quarter increase on record [1].

Breakdown of each states capital property performance to 30th November 2021.

The growth in property prices was bolstered by record low interest rates, low levels of property on the market and strong demand.

With the exception of Hobart and Darwin house price increases outperformed units, having the price growth strengthened by the upper segments of both markets [1].


In November 2021, The Reserve Bank of Australia kept Australia’s interest at the all-time low of 0.1%. With many economists not predicting rate rises until 2023-24.

This has seen lender interest rates also remain at the historically low levels.

Interest Rates in the Market.

There are variable interest rates for owner-occupied principal and interest available currently at under 2.00%.

Example rates as at 30th November on

  • Smart Booster Discount Variable Home Loan 1.85% (Principal and Interest)

  • HSBC Home Value Loan 1.97% (Principal and Interest)

For Investors there are variable rates available under 2.5% for both principal and interest and interest only loans [3]

Example rates as at 30th November on

  • Low Rate Home Loan with Offset 2.44% (Interest Only)

  • Nano Variable Home Loans 2.24% (Principal and Interest)

So, what does this mean for you as an investor?

There is no better time to consider investing in residential real estate, however, as always it is important to ensure that you are investing in the right area, at the right price, with strong rental yields and good capital growth potential.

By using our unique analysis model alongside, the data and forecasts of our unbiased panel of economists, we can assist you in taking the next step in growing a successful property portfolio.


Next Steps

Looking to get the property investment conversation started?

Or, just looking to stay in the loop?

Tim Davis – Property Investment Consultant

P: (02) 9939 3249

Disclaimer: When considering purchasing a property, it's always prudent to seek the advice of an appropriately qualified professional to determine which strategy is most appropriate for your circumstance.



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