Australian Real Estate Prices Expected to Rise Despite Regional Variations

Must Read

In a recent report, the REA Group has projected that Australia’s real estate market will witness a moderate yet promising increase of 2% to 5% by the close of 2023.

The ‘Property Market Outlook’ for August 2023, jointly prepared by the REA Group and PropTrack, identifies Perth, Sydney, and Adelaide as the focal points of this growth. 

Australia’s southernmost capital, Hobart, is expected to confront a decline of 3% to 6% in property prices, while Darwin might witness a downturn ranging from 3% to 0%.

“I think what we saw in 2022 was a bit of a roller coaster in terms of property prices in the property market because we started the year with record prices and then moved into a downturn quite rapidly,” explained Nicola Powell, Domain’s Head of Research and Economics.

The trajectory of Australia’s real estate market took a fascinating path, with a remarkable 34.9% price surge from March 2020 to March 2022. After a slight 1.9% dip from April to December 2022, the market rebounded due to increased transactions and the ongoing housing shortage.

Despite worries about rising interest rates affecting borrowing, the continuous rise in property prices is expected to endure due to persistent housing scarcity. Australia’s appeal to skilled and wealthy immigrants also contributes to the demand.

Cameron Kusher, Director of Economic Research at PropTrack, predicts possible turbulence in the luxury housing sector in 2024 due to changes in fixed-rate mortgages. However, he remains optimistic about 2023, expecting a potential 5% rise in luxury property prices by year-end, possibly even greater growth in major cities.

“I believe that by the end of this year, we’ll be talking about property prices moving into a recovery,” Powell said.

With an inviting future for global buyers, especially high-net-worth individuals (HNWIs), eyeing Australia’s luxury real estate, experts advise using secure cross-border payment methods for smooth transactions.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img