Marcus Roberts, broker and founder, Brighter Finance

"One trend that we’ll see in 2022 is people moving into suburbs closer to the city as people start moving back to working from office locations. With continued price hikes in coastal and regional areas, we’ll also see a slow down of sea and tree changes taking place. When it comes to investment properties though, the trend we’re expecting to see is more investors purchasing properties outside of Sydney, in western Sydney, regional areas and also Queensland. 

"We’ll also see a heightened focus on reduced approval times for banks in 2022 in a bid to support the continued property market growth and the current quick sale turnaround times. Whilst the big four banks streamlined many of their processes this year, we’ll see a continued focus on banks moving to increase their digital processes. All banks will want to be on the same page and comparable to everything else. 

"For 2022, the [new serviceability buffers] will most likely hit first home buyers the hardest as they’re generally borrowing more than somebody that is already in the market and are moving on to their next property. A lot of clients are now asking “is my borrowing capacity less?” as their first question. More borrowers and applicants are more cognisant of recent changes and their knowledge is increasing. "

Prices will peak

Chad Hoy Poy, national lending manager, WLTH 

"The Australian pandemic housing boom has come to an end. Prices are set to peak in 2022, followed by a drop as borrowing cost rises. However, it is unlikely that property prices will fall near pre-pandemic levels.

"This market movement occurs as affordability constraints begin to bite and macroprudential tightening fastens its grip. We can see this in the downward trend of first home buyers in the last few months. 

"Aspiring homeowners looking to invest in the coming months should expect the market to free up as the supply-demand balance will help the market slow. Yet, the path of interest rates will be significant to developments in the housing market, with many homeowners pulling out due to affordability constraints. 

"In addition, reopening international borders could see overseas investors clamber to enter the booming property market, causing housing demand problems."

A return to apartments

Michelle May, principal, Michelle May Buyers Agents

"APRA’s [serviceability] announcement will continue to see a sharp decrease for first home buyers with the market being ‘out of reach’ for them…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. 

"On top of APRA, banks will also be tightening the reins on their own accord. Serviceability expectations will be tightened and reigned in to counter the rising risks in home lending. This also weighs on the responsibility of the mortgage brokers to gently guide the clients in the right direction of their borrowing capacity that relates to the banking rules and guidelines. 

"The return of student and skilled labour immigration will see more apartments sold and rented in the inner city again and expats will continue to buy up big and return home [and a] further increase in supply will thin out the buyer pool…

"Also, people won’t buy into the FOMO hype in 2022."

Bigger houses, and slower growth

Mathew Tiller, head of research, LJ Hooker 

"In 2022, we expect to see continued property price rises in both metropolitan and regional areas, but it won’t be at the same pace recorded over the past 12-18 months. The tightening of mortgage lending criteria and the speculation of interest rate rises will slow the rate of growth.

"With restrictions now easing in every state, a larger volume of listings is expected over the course of 2022 as homeowners start to feel more comfortable with the notion of selling. This is positive news for house-hunters who have struggled with high competition and lack of choice during the pandemic…

"Seaside living will remain popular with the race on to find affordable alternatives while not compromising on lifestyle.

"As people continue to return to a more normal way of life, confidence will [also] increase in market sectors that have endured the brunt of border closures, particularly inner-city apartments. This trend is expected to continue into 2022 as our cities start to awaken. Investors are likely to be the biggest beneficiary from the return of international visitors to our shores.

"Premium properties are expected to continue fetching eye-watering prices as demand for high-quality, luxury living and the demand for more space continues in 2022."