️ Highlights:
Here are the top 5 takeaways from the article:
1. National home prices in Australia have been increasing for the ninth consecutive month, reversing the rapid decline seen in recent history.
2. Capital city home prices have taken the lead in 2023, with prices in the capitals up 5.41% so far this year.
3. Sydney is leading the housing market recovery, with house prices in the city rising 7.93% and unit prices rising 5.24% in the year to date.
4. Perth saw the biggest increase in house prices among all the capitals, with prices up 8.39%. Strong growth was particularly registered in Perth’s South East region.
5. Brisbane was the first to recover all of 2022’s price falls and return to peak. Unit prices in Brisbane grew 6.66% in the year to date, compared to a 6.43% lift in house prices.
Introduction
The Australian housing market has been a subject of intense scrutiny, especially after the tumultuous year of 2022. However, the latest data from PropTrack reveals a remarkable turnaround. National home prices have not only recovered but have hit a new record high in September 2023. This blog post delves into the specifics of this trend, highlighting the cities and regions that are leading the charge.
A National Uptick
According to PropTrack, national home prices rose for the ninth consecutive month in September 2023. The increase was 0.35% month-on-month and 4.31% year-to-date. This growth has effectively nullified the rapid decline in home prices witnessed in recent history.
Capital Cities Take the Lead
Eleanor Creagh, PropTrack’s senior economist, noted that capital city home prices have been the primary drivers of this growth, rising by 5.41% so far this year. This comes after a period of decline throughout much of 2022.
Spotlight on Sydney
Sydney has been a standout performer, leading the housing market recovery. House prices in Sydney surged by 7.93%, while unit prices increased by 5.24% year-to-date. Remarkably, four of the top 10 regions with the most significant house price increases this year are in Sydney.
Perth’s Phenomenal Growth
Perth has recorded the most substantial increase in house prices among all capital cities, with an 8.39% rise this year. The South East region of Perth has been particularly robust, registering a 10.27% increase year-to-date.
Other Notable Performers
Brisbane was the first city to recover all of its 2022 price falls, with unit prices growing by 6.66% and house prices by 6.43% year-to-date. Additionally, Regional Queensland has shown strong growth, particularly in apartments, which have risen by 5.94% so far this year.
Underlying Factors
Several factors contribute to these trends. In Sydney, a rebound in population growth and higher numbers of net overseas arrivals have likely bolstered demand. In contrast, Perth, Adelaide, and South East Queensland have benefited from their relative affordability and population growth.
Looking Ahead
PropTrack anticipates that house prices will continue to rise, fueled by strong population growth and a shortage of new homes. Interest rates are also expected to play a significant role, with many experts predicting a cut at some point in 2024.
Conclusion
The Australian housing market has shown remarkable resilience and growth, setting new records in September 2023. With multiple factors contributing to this upward trend, the outlook for the Australian property market remains optimistic.
Source: Broker News