April 2023 Property Market Update

The housing market for the broader Australian market across the 4 largest capital cities as well as the regions increased by 0.6% in March. Sydney increased by 1.4%. This is amidst the below average supply of properties on the market since September 2022 with a reduction of -20% below the previous 5-year average.

Rental markets are currently tight with an increase of long-term or permanent migrants and there is a notion that for these markets they may skip the rental phase entirely and fast track a home purchase with the lack of rental stock available.

(Source: CoreLogic)

Sydney has seen a lift in housing values of 2.0% in the most upper quartile of its market with the unit market in the same segment up 1.4% higher over March. Overall, the Sydney market in its upper quartile fell by -17.4% since the peak in January 2022.

The regional housing markets increased 0.2% over the month with housing values within Regional WA and Regional SA remaining at cyclical highs. This is lead by South Australia’s Fleurieu-Kangaroo Island at 2.6%, NSW’s Dubbo at 2.5%, VIC’s Wellington at 2.4% and Western Australia’s Mid West at 2.1%.

On the other end of the scale, Hobart recoded the biggest drop in home values at -0.9% over the month. Since the peak of May last year, housing values in the capital have declined -129% since the peak of May last year. However, it must be noted that the pace of the decrease has eased up in the last quarter. Other areas which have recorded declines include Canberra at -0.5%, Darwin at -0.4%, Adelaide at -0.1%, Regional Victoria at -0.1% and Regional Tasmania at -0.7%.

(Source: CoreLogic

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