Happy New Year for either the 1st Jan or 12th Feb which is the Chinese New Year and 2021 is the year of the Ox. Oxes are known for having an honest nature, and are diligent, dependabile, strong and determined…. I think we all needed most of those qualities last year but they are still very welcome. 😁
There are some interesting numbers coming from economic forecasters about the various markets in 2021 or recent movements. For Q4 2020 the median house price in Melbourne increased by 9.5% (that’s 9.5% increase in 3 months!) while unit prices increased 2.5% for the same quarter.
Access economics released a paper stating Victoria will have the highest economic growth in Australia in 2021 at 5.3%. Like the jump in real estate prices, the forecast economic growth demonstrates the pent up demand and likely pending catch up after the decline in 2020. This was supported by data released by the financial regulator APRA this month showing household deposits across Australia increased $113 billion or 11.4% in the 6 weeks to the start of Jan 2021.
It will be interesting to see how the economic and housing numbers play out over the course of 2021 once we see some more stable consumer and economic behaviors (if that is possible in this climate). The general message is that we are going to pull through this better than we thought, but there are still some sectors that will find 2021 tough going. The lack of international tourism and students is a concern as are the many sectors that will take time to recover while carrying the burden of 2020.
Australia is just one of five nations including Taiwan, China, Vietnam, and New Zealand who are very well placed coming into 2021. Let’s hope all our international friends are back to a safer environment very soon.