Recently, there has been an increasing number of clients consulting about real estate and looking for good deals. Therefore, we have compiled a summary of the real estate market trends in major capital cities in Australia over the past five years (2018-2023):
Sydney
Past 5 Years:
2018-2019: Price correction (~15% drop) after a major boom from 2013-2017.
2020-2021: Rebound and surge (~25-30% increase) due to low interest rates and government stimulus.
2022-2023: Slowdown caused by rising interest rates.
Melbourne
Past 5 Years:
2018-2019: Price declines (~10%) due to tighter lending.
2020-2021: Strong recovery (~20% growth) post-pandemic despite lockdowns.
2022-2023: Growth slowed by rising interest rates.
Brisbane
Past 5 Years:
2018-2020: Relatively flat market with modest growth.
2021: Surge (~20-30% increase) driven by interstate migration and affordability.
2022-2023: Continued but slower growth as rates rose.
Adelaide
Past 5 Years:
2018-2020: Consistent growth (~3-5% annually) without major price swings.
2021-2022: Surge in demand (~20% increase) driven by affordability and interstate buyers.
2022-2023: Growth slowed, but market remains stable.
Perth
Past 5 Years:
2013-2019: Price declines following the end of the mining boom.
2020-2022: Market recovery (~15-20% growth) due to economic improvement and increased demand.
2023: Slower but steady growth.
Canberra
Past 5 Years:
2018-2020: Steady growth (~5-10% annually).
2021: Boom (~25% increase) due to government stability and housing shortages.
2022-2023: Growth moderated but remained resilient.
Hobart
Past 5 Years:
2013-2019: Strong growth (~70% increase) driven by interstate migration and tight supply.
2020-2021: Further price surge (~25-30% increase).
2022-2023: Slowdown as affordability becomes an issue.
Darwin
Past 5 Years:
2013-2019: Price declines (~20-30%) due to the end of the resources boom.
2020-2021: Modest recovery (~15% growth).
2022-2023: Modest growth with continued volatility.
Key Drivers for the Next 5 Years (2024-2029) Across All Cities:
Interest Rates: Rising interest rates have curbed recent growth, but possible rate cutsmay boost demand in the latter part of the forecast.
Population Growth: Migration, especially to Brisbane, Melbourne, and Sydney, will drive demand.
Affordability: Affordability constraints, especiallyin Sydney, Melbourne, and Hobart, will limit significant price increases.
Supply: Limited housing supply in several cities will continue to push prices higher, especially in high-demand areas.
Infrastructure Investment: Major projects like the Brisbane Olympics and Sydney Metro will boost local property markets.
In summary, after a period of volatility and rapid growth in most capital cities over the past 5 years, the next 5 years are expected to bring more moderate but steady price increases, with stronger growth in cities like Brisbane and Perth, and slower growth in already expensive markets like Sydney and Melbourne.
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