Australia’s Property Boom Is over as House Prices Slow Rapidly
Australia’s property boom may finally be coming to an end, with house prices across the country slowing at a rate not seen in decades. Until now, Australian homeowners have had the upper hand, with the property market enjoying unprecedented levels of growth year-on-year, increasing by 35 per cent since mid-2020. However, a report from REA Group’s PropTrack found that is all coming to an end, with national house prices falling by 0.11 per cent in May and 0.15 per cent across all capital cities. Annual price growth has fallen from 24 per cent just six months ago to 14 per cent now. Several banks have now forecast price drops of between five and 15 per cent through to the end of 2023. A 15 per cent drop in the median property price would see the value of the average property falling by $150,000. The last time house prices slowed this quickly was more than 30 years ago – at a time when Australia was heading into a recession. Prices have continued to decline in Sydney and Melbourne, dropping by 0.29 and 0.27 per cent respectively. The only capital cities managing to buck the trend have been Brisbane and Adelaide, which have continued to benefit from affordability and pandemic-induced preference shifts. Brisbane saw a monthly growth of 0.35 per cent, while Adelaide prices shot up by 0.58 per cent. Houses are continuing to outperform units, with many Australians favouring more space since the start of the pandemic. In the capital cities, peripheral areas have increased in prominence over the post-pandemic period as people continue to work from home and the need for a short commute time reduces. It is possible, however, this trend could swing back towards inner cities as more workers begin to return to the office and immigration returns in 2022 and 2023.
Tags : Australia Property Boom House Prices Slow Rapidly REA Group’s PropTrack Brisbane