PHOTO: Property prices across the capital cities are expected to climb 20 per cent by the year’s end

ANZ has tipped house prices to jump by more than 20 per cent this year, lifting its forecasts despite the lockdowns, off the back of the stronger than expected property market.

Property prices are expected to rise 24 per cent in Canberra by year’s end and 23 per cent in Sydney and Hobart, according to the bank’s latest forecasts, released on Wednesday. Gains of 21 per cent and 20 per cent are expected in Brisbane and Melbourne, respectively.

ANZ is the latest of the big banks to revise its forecasts upwards amid lockdowns, which ANZ senior economist Felicity Emmett said were unlikely to derail the strength of the housing market.

“[We’ve updated our forecasts] because of how strong prices have been; that includes through the lockdown period,” Ms Emmett said. “We did think by this time of the year that the momentum in prices would have pulled back.”

Instead, even in Sydney – which has been in lockdown for two months – prices continued to climb.

“When you look at some of the leading indicators, auction clearance rates, sales to listing ratios, you can see the market is still very very tight and there hasn’t been much of a drop-off in demand or interest in the face of these quite heavy lockdowns,” Ms Emmett said.

In Melbourne, where the clearance rate had been harder hit by lockdown restrictions – which include a complete ban on property inspections – prices were still holding up well, Ms Emmett added.

She said she expected prices would continue to fare better than they had during the city’s extended lockdown last year, when there was greater uncertainty around the impact of the pandemic.