Based on the latest residential data and insights relating to demand and median price, the 2018 Australian Property Market Report has been released and we are expected to see a slow-down of the real estate market, as demand moderates and housing prices fall nationwide.
Whilst conditions vary from state-to-state, banks continue to cut mortgage rates and the days of low interest rates will soon be over the report says, with restrictions on lending expected.
Demand for property in Australia has risen 5.1% year on year, with the demand for houses coming in at a 6.8% increase from last year. “Across Australia, property prices have increased by 6.3% over the year," says Nerida Conisbee, REA Group Chief Economist. "Over the past quarter, however, there’s been a significant slowdown with prices falling and demand for property continuing to slacken nationwide.”
"Across Australia, Property prices have increased by 6.3% over the year."
Nerida Conisbee, REA Group Chief Economist
Sydney and Perth are experiencing the most significant declines in demand but, whilst Perth rallied at 7.0% increase YOY and continues to grow in demand, the draw of Sydney as a city to live in has taken a massive 25.4% dive.
Other capital cities have surged – most significantly demand for property in Hobart has increased by an amazing 48.1%, netting it more than half of the top 10 most in-demand suburbs to live in.
Canberra is also up significantly, with a rise of 27.6% in demand for housing in the Nation’s Capital – mostly driven by the rise in popularity of apartments. Whilst Melbourne was not the largest city to enjoy increased demand, it saw the north-eastern suburb of Warrandyte listed as the most in-demand suburb in Australia, driven by its big homes and block sizes, as well as relative affordability and commuting distance to Melbourne.
The top 10 most in-demand suburbs in Australia
- Warrandyte, VIC
- Bellerive, TAS
- South Hobart, TAS
- Eltham, VIC
- Battery Point, TAS
- Hobart, TAS
- Middle Park, VIC
- Albert Park, VIC
- West Hobart, TAS
- Eltham North, VIC
In terms of housing prices, Sydney remains far and away the most expensive city in which to purchase a home, with a median price of $800,000 – compared with Hobart at $425,000. Canberra and Hobart saw the strongest price growth over the year.
Median house price nationwide
- Sydney $800,000 -2.4%
- Melbourne $650,000 +8.3%
- Canberra $596,000 +12.5%
- Darwin $479,000 -1.2%
- Brisbane $475,000 0%
- Perth $460,000 -5.7%
- Adelaide $440,000 +3.5%
- Hobart $425,000 +17.7%
Read the full report here.
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