A TIME OF CHANGE
We spoke to eight of our regular property investment commentators. Here’s their expert opinions on what will influence the market in 2022.
THE ECONOMISTS
TONY ALEXANDER, INDEPENDENT ECONOMIST
House price growth will flatten out this year and price increases should drop to about 5% by the middle of the year.
The factors leading to lower house price increases include a brain drain, higher interest rates, tightened lending and investors staying away from the market.
When the borders reopen properly there will be an exodus, by mainly young people, to Australia for better wages and lower house prices.
Investors will not come back into the market. There will be a slight increase in the number of investors selling property, but the vast majority see rentals as a long-term game and are prepared for the vagaries of the market. The implications of the Government’s decision to remove mortgage interest payments as a tax-deductible expense will not hit “mum and dad” investors until they start preparing their tax returns in April. That could cause a few to sell. However, the buying frenzy by investors is over.
The bulk of interest rates rises in the three-to-five-year bracket have occurred as the trading banks have been aggressive in this area, even before the Reserve Bank
