The Australian property market in 2023 was filled with several shifts and unexpected turns, according to the Real Estate Buyers Agents Association of Australia (REBAA) which released a report that detailed its activities for the year.
“Regional variations, supply-demand dynamics, and changing rental landscapes have all played pivotal roles in shaping this narrative,” said Melinda Jennison (pictured), the president of REBAA, noting the market’s resilience and adaptability.
“The intricate interplay of factors continues to shape the nation's property landscape, creating an environment where vigilance and adaptability remain key for both buyers and sellers,” she said.
At the start of the year, there were signs that the minor national housing market downturn was losing its momentum even if the interest rates were increasing. In the following months, there was a rebound that raised property prices to double-digit growth from February to October in Perth, Sydney, and Brisbane.
However, this surge in prices was not uniformly felt monthly across the country, as the pace of monthly price growth moderated while listing volumes grew in Melbourne, Sydney, Hobart, and Canberra.
Meanwhile, there was an accelerated rate of property price growth in the last quarter at Perth, Adelaide, and Brisbane. The stock levels that were advertised in these areas either declined or remained stable.
Jennison noted that the divergence showed the influence held by the dynamics of supply and demand at a local level on the performance of the market. With the strong rental growth being driven by the tightest rental market ever recorded, there were increases in house and unit rents across the country.
“Adelaide and Brisbane led the charge in January, with the most substantial increase in annual house rents, according to CoreLogic. However, by October, the scene had shifted, with Perth and Melbourne taking centre stage in the annual house rent increase rankings,” Jennison said.
Sydney and Brisbane initially experienced the greatest annual change up to January when it comes to unit rents. By the end of October, Perth ended up having the largest unit rent price growth with Brisbane remaining in second place.
