Following Australia's record-breaking housing boom in 2021, relief is on the way for buyers in 2022 as the house price growth rate continues to cool off at the back end of the year.

Despite easing buyer demand, Domain's End of Year Wrap Report noted all capital cities bar Hobart ended spring 2021 higher than the three year average. 

Domain notes the traditional spring to summer real estate dip brings with it an average drop of 11% over the past three years, however the start to summer this year has been unusually strong.

Chief of Research and Economics at Domain, Dr Nicola Powell, said the year is closing in a different position to the start with sellers re-engaging with the market and increasing supply. 

"While it remains a sellers' market, slowly market dynamics are changing to provide more favourable conditions for buyers,” Dr Powell said.

Moving into 2022, buying opportunities are looking bright with Domain’s report noting appraisals soared across the final quarters of the year.

This indicates that a number of homeowners are considering the state of the market and listing their properties for sale in the new year.

Domain notes similar predictions to the big four banks, with prices not expected to rise at the same pace next year.

This comes off the back of tighter lending conditions reducing buyer leverage and wages growth not keeping pace with price growth.

Trends forecast for 2022

Coastal locations are tipped by Domain to be the areas most sought after by Australians, honing in on areas that are affordable and poised for future growth in 2022.

This is reflective of property trends throughout 2021, with beaches, pools and waterfront locations the idyllic property features Australians crave. 

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Source: Domain 

Dr Powell says investors will continue to be a growing market segment, unless APRA puts on the brakes.

"Investors have had the benefit of rising rents and equity growth, with prices set to continue to rise - albeit at a slower pace
than 2021 - investors will continue to chase it," she said.

"It remains a landlords’ market across the most major cities and into regional Australia."

Domain reports regions such as inner Melbourne and Sydney’s City and East historically have a high level of overseas migration and student population, yet will be susceptible to a tightening rental market once international borders fully reopen. 

Dr Powell notes population growth is likely to be a government focus in 2022 and beyond to sustain higher economic growth and build Australia’s skilled workforce. 

"The return of overseas migrants, international students and particularly skilled highly-paid migrants, will add to demand for housing," Dr Powell said.


Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

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LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
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5.99% p.a.
5.90% p.a.
Principal & Interest
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  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
Principal & Interest
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Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Image by Susann Schuster via Unsplash.

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