2022: Property predictions - Raiz Invest

January 13, 2022

2022: Property predictions

January 13, 2022

We looked at 2021 in review, and now we want to share some thoughts of trends that may play out in Aussie property in 2022.

Please note that this is not advice, but rather an opinion on how changes in demand and supply in the property market, as well as changes in participants behaviour and needs may affect listing times, property values, and even property designs.

 

Key predictions:

Supply is likely to increase in 2022 as price rises slow down

With such large price rises seen in 2021, some sellers won’t want to miss the boat if prices stop rising, or potentially if prices drop from record highs in 2022.

 

Strong sales will likely continue, but property sales may take longer

As supply starts to meet demand, property sales may take a week or two longer to settle after listing compared to 2021, meaning buyers can possibly be a bit choosier.

 

Buyers will become more discerning before they commit to a purchase

This will stem directly from an increase in supply and properties staying on the market for longer, taking the perceived pressure away from the buyer and possibly moving the pressure onto the seller.

 

Interest rates are likely to continue creeping higher

We have already seen interest rates moving up in late 2021 from the record lows, but competitive variable rates will hopefully keep borrowers engaged.

 

2022 will see the rise of the digital home loan

More lenders are offering the possibility of a digital loan approval in minutes, not days or weeks.

 

The home study area becomes a necessity for new apartment designs

A substantial cohort of office workers who can work from home (wfh) will want to wfh at least one to two days per week from home in 2022 and beyond. They will want a comfy space to do so.

 

CBD offices may change forever

Some CBD commercial properties may even be converted into apartments to better make use of the space and achieve a better return for the owners.

 

The Federal Government will continue to release more places for the 5% Deposit Scheme (FHLDS)

Check out our previous blog for more information on this scheme.

 


 

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

 

download-raiz-app
Click to download the Raiz app

 

Important Information

If you have read all or any part of our email, website, or communication then you need to know that this is factual information and general advice only. This means it does not consider any person’s particular financial objectives, financial situation, or financial needs. If you are an investor, you should consult a licensed adviser before acting on any information to fully understand the benefits and risk associated with the product. This is your call but that is what you should do.

You may be surprised to learn that RAIZ Invest Australia Limited (ABN 26 604 402 815) (Raiz), an authorised representative AFSL 434776 prepared this information.

We are not allowed, and have not prepared this information to offer financial product advice or a recommendation in relation to any investments or securities. If we did give you personal advice, which we did not, then the use of the Raiz App would be a lot more expensive than the current pricing – sorry but true. You therefore should not rely on this information to make investment decisions, because it was not about you for once, and unfortunately, we cannot advise you on who or what you can rely on – again sorry.

A Product Disclosure Statement (PDS) for Raiz Invest and/or Raiz Invest Super is available on the Raiz Invest website and App. A person must read and consider the PDS before deciding whether, or not, to acquire and/or continue to hold interests in the financial product. We know and ASIC research shows that you probably won’t, but we want you to, and we encourage you to read the PDS so you know exactly what the product does, its risks and costs. If you don’t read the PDS, it’s a bit like flying blind. Probably not a good idea.

The risks and fees for investing are fully set out in the PDS and include the risks that would ordinarily apply to investing. You should note, as illustrated by the global financial crisis of 2008, that sometimes  not even professionals in the financial services sector understand the ordinary risks of investing – because by their nature many risks are unknown – but you still need to give it a go and try to understand the risks set out in the PDS.

Any returns shown or implied are not forecasts and are not reliable guides or predictors of future performance. Those of you who cannot afford financial advice may be considering ignoring this statement, but please don’t, it is so true.

Under no circumstance is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.

This information may be based on assumptions or market conditions which change without notice and have not been independently verified. Basically, this says nothing stays the same for long in financial markets (or even in life for that matter) and we are sorry. We try, but we can’t promise that the information is accurate, or stays accurate.

Any opinions or information expressed are subject to change without notice; that’s just the way we roll.

The bundll and superbundll products are provided by FlexiCards Australia Pty Ltd ABN 31 099 651 877 Australian credit licence number 247415. Bundll, snooze and superbundll are trademarks of Flexirent Capital Pty Ltd, a subsidiary of FlexiGroup Limited. Lots of names, which basically you aren’t allowed to reproduce without their permission and we need to include here.

Mastercard is a registered trademark and the circles design is a trademark of Mastercard International Incorporated.

Home loans are subject to approval from the lending institution and Raiz Home Ownership makes no warranties as to the success of an application until all relevant information has been provided.

Raiz Home Ownership Pty Ltd (ABN 14 645 876 937), an Australian Credit Representative number 528594 under Australian Credit Licence number 387025. Raiz Home Ownership Pty Ltd is 100% owned by Raiz Invest Australia Limited (ABN 26 604 402 815).


Bitnami