In this article, expert buyer’s agent Michelle May, shares her property predications for 2022 with How To Money readers, along with some tips to help you navigate the market in the new year.

1) APRA announcement will affect first home buyers the most

This year’s APRA announcement will continue to see a sharp decrease for first home buyers with the market being ‘out of reach’ for them. ABS Data shows that the number of new loan commitments for first home buyers fell in September 2021 for the eighth consecutive month. As a result, they are now down -27.1% compared to the same time last year. Interestingly, the data shows that at the same time as this happened, investor loans rose 83.2%. 

Those first home buyers that are able to still get into the market will have to turn back to apartments (i.e.Strata instead of Torrens Titled). Otherwise, they risk renting for the longer term as the disparity between apartment and house price increases have been significant. 

2) Return of student immigration will see more apartments sold and rented in the Inner City again

Vacant apartments targeted to this market, and have been sitting idle during the pandemic, will now be snapped up again as we see the return of overseas students. As we see the population increase again, we will see more buzz around the apartment market, specifically in University areas. 

3) The rise of new Sydney hot spots

Bexley, Belmore and Arncliffe have grown exponentially over the last year (30%+ growth). I predict these will continue to be just some of the Sydney hot spots in 2022. A contributing factor in the shift is that people are being pushed out of the Inner West due to higher price points. 

Funky young couples and families will buy up big in these new hot spot areas. They are great areas for starter homes due to relatively good affordability. Another win-win is that with the upgrade of the metro line, the commute to the City will be around 20 minutes shorter.

We will also see this trend in other markets as well. 

4) The new Western Sydney Airport is a good news story from a buyers perspective

A lot of development around the new airport and other areas of new development in general, such as national examples, will have more affordable properties. This will mean that more supply will keep prices down so people will have more options to consider moving out further from the Inner City suburbs. We will also see this in other markets as well where we see new infrastructure and developments. 

5) First home buyers will be extra cautious

In 2022 first home buyers will realise the red flags quicker and be aware of the pitfalls and underquoting in the market. Most importantly though, first home buyers will realise that they need help buying a home and turn to the professionals that will guide them on the right path. 

6) Bank of Mum and Dad continues to rise

With affordability still an issue, first home buyers will still be turning to the bank of mum and dad for either cash gifts, early inheritances or looking to them as guarantors.  

Michelle May (HTM Guest Contributor)  

Host of Buy Your Side and Principle of Michelle May Buyers Agents