1. 2023 has been a year of recovery for property prices, with many suburbs regaining last year’s losses and some reaching new highs.
2. Home prices decreased in most capitals in 2022, except for Perth and Adelaide which experienced positive year-on-year growth, albeit at slightly lower levels.
3. Brisbane suburb Riverview has seen the highest growth in median house values this year, with a 23.73% increase since January 2023.
4. Sydney has led the recovery, being the fastest city to bounce back from last year’s downturn. Four of the top 20 suburbs for house price growth are in New South Wales, three of which are in Sydney.
5. Avoca Beach on the Central Coast of NSW has seen the fastest unit value growth, with a 25.85% increase this year. However, the Central Coast has seen some price drops as Sydney buyers returned to the city after lockdowns ended
2023 has marked a significant turnaround in the Australian property market. After a challenging 2022 characterized by interest rate hikes and declining property prices, this year has witnessed a robust recovery. Several suburbs have not only recuperated from the previous year’s setbacks but have also achieved new record-high prices.
The Landscape of Recovery
The majority of Australian capitals saw a dip in home prices in 2022, with Perth and Adelaide being the notable exceptions. Both these cities have consistently shown positive year-on-year growth, albeit at a slightly subdued rate compared to earlier years. Canberra is on the brink of achieving positive annual price growth, while Hobart remains a bit behind, registering a 3.83% decline from the previous year.
Spotlight on the High Performers
Perth and Adelaide have been the shining stars, with property prices in these cities growing every month of 2023. However, it’s a suburb in Brisbane, Riverview, located in the Ipswich region, that has stolen the limelight. Riverview has seen a staggering 23.73% growth in house values since the beginning of the year. The entire Ipswich region has been a hotspot, with all its suburbs experiencing positive growth, leading to an overall 9.19% increase in dwelling prices compared to last year.
Sydney, which was at the forefront of the 2022 downturn, has made a swift recovery. Four of the top 20 suburbs with the most significant house price growth are in New South Wales, with three located in Sydney. Kariong, situated near Gosford, has witnessed a 23.08% rise in house values since January. Pagewood and Beaconsfield, both in the southern part of Sydney, have also seen impressive growth.
For units, a NSW suburb, Avoca Beach on the Central Coast, leads the pack with a 25.85% increase in value this year. The Central Coast had become a sought-after destination during the pandemic, with many from Sydney relocating there. However, as lockdowns ended and work resumed, its appeal waned slightly.
The property market’s strong recovery in 2023 is expected to continue into 2024. With Australia’s population growth accelerating due to the return of overseas migrants, the demand for property is set to rise. Coupled with potential interest rate cuts in the coming year, the property market is poised for sustained growth, with many areas likely to surpass their previous highs before the 2022 slump.