JOEL ROBINSON | 20 NOVEMBER 2020
NAB are the latest bank forced to backflip on their dire house price forecasts.
Nationally NAB expect rises of around five per cent over 2021 and six per cent over 2022, with house price growth likely to be stronger than the apartment sector.
The best gains are expected in Brisbane, Adelaide and Hobart, all predicted to rise 7.4 per cent, followed by Perth at five per cent.
They are expecting weaker returns from Australia's two biggest housing markets in 2021 compared to the rest of the nation's capitals.
"We see the sharp slowdown in population growth due to border closures as the key risk to house prices, particularly for Sydney and Melbourne." NAB's Q3 2020 update suggested.
NAB's report, headed by their group chief economist Alan Oster, says Melbourne's house prices will grow 3.6 per cent, compared to Sydney's 4.4 per cent over 2021.
They expect further gains in 2022, with Sydney house prices to rise six per cent and Melbourne 5.4 per cent.
NAB'S Q3 2020 FORECAST
"We expect that lower interest rates for an extended period will be a key support to the housing market over the next couple of years, seeing a boost to prices across the country.