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The Australian property market saw a significant surge in 2023, with national property values rising by 8.1% according to the CoreLogic national Home Value Index. This upturn was especially notable given the backdrop of rising interest rates and cost-of-living pressures. With only two states and territories – Hobart and Darwin – recording an annual drop in house values, the largest uplifts were observed in Perth (15.2%), Brisbane (13.1%), and Sydney (11.1%). However, Hobart and Darwin saw decreases of 0.8% and 0.1%, respectively. These results reflected a mixed bag of outcomes in the housing market.
The disparity in the rate of home value growth was a notable trend across the capital cities, with Perth, Adelaide, and Brisbane seeing values rising at a rate of more than 1% per month on average since May. Meanwhile, Melbourne and Sydney experienced a sharp slowdown in growth pace following the June rate hike.
The regional markets also saw a positive shift, with values increasing by 4.4% in 2023. Overall, national dwelling values remained 31.3% above pre-COVID-19 levels, highlighting the resilience and overall stability of the property market.
Despite the overall growth, the housing market presents a grim reality for Australians looking to break into the market. The Housing Price Index revealed prices soaring by 15% in one city, likely adding to the challenges faced by potential homebuyers. However, PropTrack’s latest Home Price Index forecasted continued price climbs in 2024, suggesting a sustained upward trend in the coming year.
The year ended on a slightly subdued note, with combined capital city prices falling by 0.09% in December, marking the only decline of the year despite hitting a fresh peak in November.
As the Australian property market continues to navigate through various economic challenges and market dynamics, the 2023 upturn signifies a resilient sector that is adapting and responding to changing conditions. Despite the mixed outcomes across different regions and cities, the overall trajectory of the housing market points towards a positive shift, offering both challenges and opportunities for buyers and sellers alike.
