Australia’s Property Market: A Tale of Two Sides

The Australian property market in 2023 presents a contrasting picture of growth and affordability, as highlighted in two insightful reports. Jonelyn Cueto, reporting on a study by Hotspotting, unveils Perth’s initial strong performance in the market, while Tracey Prisk’s examination of PropTrack data sheds light on the most affordable suburbs for potential investors.

Perth’s Waning Dominance

Perth, once a national leader in property price growth, has seen a decline in momentum. “Three months ago, some 79% of suburbs had momentum in Perth, but now only 54% do,” explains Terry Ryder, Hotspotting’s director. This trend indicates a shift from rising to plateauing markets. Despite this, Melbourne, Brisbane, and Sydney have surged ahead, with Melbourne leading at 87% of suburbs showing positive trends.

Tim Graham, Hotspotting’s general manager, reflects on this shift, noting, “Six months ago, we reported a glimmer of recovery… now Melbourne is the nation’s strongest market.” This change underscores the dynamic nature of Australia’s property landscape.

Defying Predictions

Ryder also highlights the market’s resilience, defying economists’ predictions of price drops due to rising interest rates. “Our analysis shows that markets throughout the nation are overwhelmingly upbeat,” he says, noting a mere 4% of suburbs experienced price drops against the expected 15%.

The Rise of Affordable Suburbs

Contrasting these hotspots, Prisk’s article focuses on affordable suburbs, where prices have fallen more than 10%. Tasmania’s Carlton and NSW’s Mullumbimby are notable examples. The most affordable suburb, as per PropTrack’s Anne Flaherty, is Rangeway in Western Australia, with a median home value of $174,000.

Flaherty observes, “For houses, the most affordable suburbs are primarily located across Western Australia, Queensland, and South Australia.” This data suggests opportunities for investors and buyers in various regions.

Implications for Buyers and Investors

As the market continues its unpredictable journey, buyers and investors face a myriad of choices. The contrasting trends in major cities and affordable suburbs offer diverse opportunities. The affordability crisis, however, remains a concern, with housing affordability reaching its worst level in three decades.

In Conclusion

The Australian property market in 2023 is a landscape of contrasts, with booming city markets and emerging affordable suburbs. This duality offers unique opportunities and challenges for buyers and investors alike, underlining the dynamic and ever-changing nature of real estate in Australia.

References:

“Revealed – Australia property market’s hotspots” by Jonelyn Cueto. https://www.brokernews.com.au/news/breaking-news/revealed–australia-property-markets-hotspots-283838.aspx 

“PropTrack reveals top property investment spots” by Tracey Prisk. https://www.mpamag.com/au/mortgage-industry/market-updates/proptrack-reveals-top-property-investment-spots/470624