Credit rating agency Fitch has upgraded its outlook on Australia’s home prices to among the highest in the world. The agency has lifted its forecast for house price growth over this year to a range of 14% to 16%, a jump from the 3% to 5% it had forecast in December 2020.

The upbeat take on the housing market’s direction comes despite recent lockdowns, which analysts say will lower activity in the short term but potentially spur a strong spring selling season.

Global bank HSBC predicted the price growth being recorded across the country could reduce in 2022. The bank expects a 11% to 13% rise in property prices this calendar year but says the growth rate with drop to between 5% to 9% next year.

By contrast, Fitch has raised its home price expectations for 2021 in five countries including Australia, Canada and the US due to macroeconomic recoveries as vaccines have rolled out and the extension of government support measures.