Are you keen to buy in Australia in 2024? Here’s an overview of the Australian property market in 2023 and a look at what is in store for the coming year.
According to Core Logic, the national home index rose by 8.1% in 2023. This was a significant turnaround from the – 4.9% drop seen in 2022. However, it is well below the 24.5% recorded surge of 2021.
However, the story was not the same across Australia, especially in the country’s capitals. Melbourne finished the year on a drop of -0.3 and a median value of $780,457. While Sydney saw a slight increase of 0.2% and a median value of $1,128,322.
Surge for Perth
Perth property sees a surge.
But Perth has become a surprising hotspot for property buyers. In December 2023, it saw an increase of 1.5%. Moreover, the annual growth rate of 15.2% (at the opposite end of the spectrum, regional Victoria saw a -1.6% fall). The median value stands at $660,754. According to Core Logic, the reason for this difference is that Perth, Adelaide and Brisbane have not faced the affordability challenges that have impacted the larger cities. Nor have their housing supplies been so pressurised.
One suburb in southern Perth, Armadale, reported the greatest surge in the country of 25%. According to ABC News, one resident, Tom Kelly sold his three-bedroom house in the city of Armadale for more than double what he paid for it. In 2018, he bought the home for $210,000 and sold it for $510,000 in 2023. Armadale was not the only suburb to see a surge more than Perth’s 15.2% annual average, others did too: Gosnells (22.6%), Rockingham (21.5%), Mandurah (19.9%), Kwinana (19.7%), Cockburn (18.1%), Sepertine – Jarrahdale (18.1%), Wanneroo (17.4%), Kalamunda (16.5%) and Canning (16.2%).
Plus, according to Guardian Australia, houses are selling fast in Perth. The median house is listed for eleven days before being sold. This is ten days less than the next fastest selling capital, Brisbane.
This surge for Perth is reflected in the rental market too. Units rents rose by 16.5% (or approximately $80 per week on the median value) over the year. This, in turn, has led to a number of investors from the east coast of Australia buying property in Western Australia to make the most of high rental returns.
Could Perth suit you?
Perth.
As well as a sought-after property market, Perth has a lot to lure in international home buyers. Positioned on the Swan River and overlooking the Indian Ocean, Perth can feel quite isolated from Melbourne and Sydney – but that in itself, is part of its appeal. It quite literally offers a different side to Australia. Following many government initiatives to attract overseas workers, almost a third of its inhabitants were born outside of Australia, so it’s safe to say you won’t feel alone in your transition to life there.
As well excellent healthcare, education, and job opportunities (and higher wages), the city promises a wonderful quality of life. You’ll get to bask in over 3,000 hours of sunshine a year. And have a choice of gorgeous beaches to enjoy it all from. Find out more here.
Outlook for 2024
In their analysis, Core Logic says that 2024 has “the potential for a year of two halves”. They predict that dwelling value will be tested by high interest rates and weaker economic conditions, with this already seen in Melbourne. However, Australia is still facing a shortage of housing and with remaining high, this is unlikely to change dramatically. Furthermore, with a record 510,000 people having moved to the country in the last year, this is likely to have a delayed impact on housing supply as migrants look to buy an Australian home.
A note for overseas buyers
Australia have recently changed the rules for overseas investors looking to buy in the country. They are being strongly encouraged to purchase new-build properties. Overseas buyers will now face a tripling of investment fees for the purchasing of established homes. Plus, the foreign investment application fees for Build to Rent projects will be at the lowest commercial level. Find out more here.
You might also like:
- Could your dream home be along Australia’s Sunshine Coast?
- Australia’s Gold Coast: one of the world’s most welcoming cities
- Find your dream home in regional Victoria
