Real Estate 2022: Boom ‘softer’ but not over￼￼
After a year of record-breaking sales and unprecedented value growth, real estate industry experts say 2022 is looking to soften.
The tightening of debt accrual, fewer foreign investors and worsening affordability constraints are all signalling the end of 2021’s unprecedented activity.
In a CoreLogic Outlook for 2022 report, the real estate industry analysts cited ‘softer growth rates are likely to coincide with fewer purchases’.
But what about the Hunter region?
Hunter property buyers agent Chad Dunn says the first quarter of 2022 could be all about our big city neighbour.
“The biggest thing facing us in February is if China goes into Taiwan,” he said.
“That’s what top-end clients in Sydney are saying. They’re watching the situation very carefully.
“I’m not saying that it’ll be a world war, but it will send shock waves to the stock market and in turn to the property market.”
In the three months to October, housing finance data shows the amount of money loaned for the purchase of property fell 6.3% compared to the previous quarter.
Mr Dunn believes these numbers are irrelevant when money moves out of a capital city and into regional suburbs.
“Sydney still sees Newcastle as really good value,” he told Newcastle Weekly.
“In fact, it’s only Newcastle locals trying to enter the market that say otherwise.
“I think growth will continue in 2022 for properties with a lifestyle factor, properties with a bush outlook, a sea view or lake access, and let’s face it that’s all here in Newcastle.”
Port Stephens is another region on Mr Dunn’s radar.
“It’s really coming into its own at the moment. We’re starting to see Newcastle locals pushed out of the market move further north to Port Stephens and commute to work.
“While Sydney buyers are heading into Newcastle, Newcastle is moving into Port Stephens.”
Demographers might agree.
“You’ve probably heard of the 2022 great resignation predictions,” Mr Dunn said.
“I think we’ll see more and more people seeking employment that allows them to work remotely, and I think regional areas like Port Stephens and the Hunter Valley will benefit from this.”