Topics Jefferies | home prices | Residential property market
WHAT JEFFERIES SAYS"Residential sales to rise through 2021, to 10 per cent above 2019 levels."Even then, 2021 sales would be 30 per cent below peak and 10 per cent below the 2010-2019 decade average levels, indicating significant growth possibilities ahead""The sales momentum has improved significantly by 4Q20 with consultants estimating sales reached 10-15 per cent of pre-Covid levels"Low rates, along with likely double-digit income growth, should keep affordability at cycle best levels. Investment demand is also improving as evident by sales pick-up even at the high-end.""Inventory (units) is already down 20 per cent from peak. By end 2021 inventory should reach c25 months of sales, which is close to price appreciative levels. Importantly, to sustain the cycle beyond 2021, some price increases would be considered healthy, "
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