Australian Housing Market Shows Remarkable Resilience Amid Diverse Trends - Property Inc

Australian Housing Market Shows Remarkable Resilience Amid Diverse Trends

Australia’s housing market is demonstrating extraordinary resilience, with recent reports indicating widespread growth in property values across the nation. CoreLogic’s latest data, as analyzed by Head of Research Eliza Owen, reveals that over 80% of house and unit markets have experienced an increase in values over the past three months, highlighting a robust trend in the real estate sector.

According to CoreLogic’s interactive Mapping the Market tool, 83.1% of house markets and 80.6% of unit markets saw a rise in value in the three months leading to October 2023. “This broadly reflects continued growth in the Australian housing market, despite high interest rates and weakening economic conditions,” said Eliza Owen, CoreLogic’s Head of Research. She further noted the diversity in performance across different cities, citing strong growth trends in cities like Adelaide, Perth, and Brisbane, where migration trends and low listings levels are driving demand.

In Brisbane, remarkable growth was observed with all 162 unit markets analyzed seeing a rise in values. Adelaide and Perth also showed significant growth, with Perth recording 98.1% of its house and unit markets increasing in value. Sydney and Melbourne, however, are running at a ‘mid-speed’ with growth rates of 2.5% and 1.2% respectively.

Contrasting these positive trends, Hobart and Darwin witnessed declines in some of their house markets. Owen highlighted Hobart’s shaky capital growth trends and an increase in total listings.

Parallel to these developments, the National Australia Bank (NAB) reports a surge in housing confidence, reaching a two-year high. As per NAB’s Q3 2023 Quarterly Australian Residential Property Survey, housing market sentiment has strengthened, driven by the return of foreign buyers and continuous price increases. “Expectations for a housing market recovery over the next few years strengthened, with confidence levels among surveyed property professionals rising to their highest levels in around two years,” the report stated.

The bank anticipates a near-term peak in interest rates before potential cuts in the second half of 2024. This forecast aligns with rising house prices and tight rental availability nationwide. Queensland’s housing market sentiment outperformed the national average, with significant contributions from resident owner occupiers.

However, challenges remain, notably the lack of stock and access to credit. The NAB survey also highlighted the increasing participation of foreign buyers in both new and established housing markets, reaching levels not seen since mid-2018.

In conclusion, the Australian housing market is showcasing diverse trends with significant growth in most regions, tempered by challenges in certain capitals. As the market braces for potential interest rate changes, the resilience and diversity of Australia’s real estate landscape continue to be its defining characteristics.

References:

“Values rising in more than 80% of Australian house and unit markets,” by CoreLogic. https://www.corelogic.com.au/news-research/news/2023/values-rising-in-more-than-80-of-australian-house-and-unit-markets 

“Housing confidence at two-year high as first rate falls pencilled in,” by Sophie Foster. https://www.realestate.com.au/news/housing-confidence-at-twoyear-high-as-first-rate-falls-pencilled-in/ 

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