As the curtain falls on 2023, time seems to have woven a tapestry of events that defined the Australian property market. Amidst the myriad of conversations, one common thread emerges the intention to shape a more secure financial future.
At National Investment Advisory, we extend a heartfelt congratulations to our clients who turned intention into action this year. Your commitment to financial enhancement deserves recognition, marking just the beginning of a transformative journey.
Unmasking Media Spectacles
Media headlines in early 2023 resembled a dramatic saga, predicting ominous drops in Australian residential real estate values. However, sensationalism aside, the truth prevailed. This serves as a reminder to seek advice from professionals, deterring the impact of fear-fueled decisions on potential investors.
National Property Values Soar
Australia’s median property value stands proudly at a record high of $753,654, marking an 8.1% surge since the year’s inception. Sydney leads the price hierarchy with a median house value of almost $1.4 million. Throughout 2023, record low levels of homes for sale coupled with a 19% deficit in total listings below the previous five-year average have set a unique tone for the market.
A Glimpse into Capital Cities
Adelaide: Affordable Promise
- Median house value: $756,989.
- Median unit value: $479,428.
Adelaide showcased a promising 8.7% growth since March, underscoring its affordability, nearly 50% more than Sydney. Exceptionally low vacancy rates of 0.3%, the lowest among capital cities, define its tight rental market.
Brisbane: A Surging Affair
- Median house value: $870,526.
- Median unit value: $552,332.
With a remarkable 10.5% increase since January 2023, Brisbane continues its upward trajectory. Substantial internal migration contributes to the demand-supply imbalance, making it an enticing choice for investors.
Melbourne: Modest Growth
- Median house value: $943,725.
- Median unit value: $610,490.
Melbourne experienced modest growth of 3% in 2023, influenced by factors like increasing stock levels, decreasing affordability, and low consumer sentiment. An exodus to other states and regional areas adds complexity.
There are still great pockets to explore in Victoria and certain pockets within Melbourne as well as regional areas must be explored by savvy investors. The apartment in market in Melbourne offers an opportunity for investors looking for higher yields and great entry points.
Perth: Full Steam Ahead
- Median house value: $676,910.
- Median unit value: $457,296.
Perth surges with a 1.9% monthly increase, recording the largest gain since March 2021. With listings almost 40% below the five-year average, homes sell in a median of just 13 days. A market to watch in 2024.
Sydney: Notable Slowdown
- Median house value: $1,397,366.
- Median unit value: $836,220.
November sees a slowdown in Sydney’s growth, yet it maintains an impressive overall result with a 10.2% increase for the year. The challenge lies in perceiving long-term value considering high entry points.
Peering into 2024
As we approach 2024, a new growth cycle emerges. National Investment Advisory anticipates a two-speed market with modest growth across many cities. Key areas, however, are poised for substantial benefits, presenting opportunities for investors. Our insights predict stable rental markets, low vacancy rates, and the potential for interest rate reductions in 2024.
The tale of 2023 is not just about the year that was; it’s about preparing for the promising years ahead. For those considering navigating this dynamic market, National Investment Advisory stands ready to provide the guidance and support needed to secure a robust financial future.