There has been a significant change in Australia’s property market in the past few months. It is believed that the results of the federal election are one of the factors that have led to this change, alongside the fact that APRA has minimized its restrictions in lending. In May, a decline in the value of the landed property was reported.
Australia has encountered a decline in property value in 19 consecutive months, of which May had the least drop of only 0.4%.
According to CoreLogic, there was a drop in the combined capital city values by at least 0.4%, whereas the regional markets recorded a fall by at least 0.2%. Still on the fall, over the past year, the national dwelling values dropped by 7.3%, and this was the hugest fall.
In a nutshell, the combined dwelling values were at least 8.4% lower while the value of combined regional markets dropped by 3%.
It is important to point out that the value of property dropped in almost all the main cities of Australia. The only cities that were not affected were Adelaide, Canberra, and Hobart. Nevertheless, all cities recorded a lower rate in annual value in the past 12 months, as compared to the previous year.
There is speculation that there will be a further drop in the value of landed property in Australia as long as APRA continues to lift its restrictions in lending. However, many other factors come to play when it comes to determining the value of property in the country. These factors include supply and demand, population, and demographics. The property market trends in 2019 have raised eyebrows among realtors looking to make money in the main cities of Australia.
If you intend to try investment in property in 2023, then you might need to plan carefully. CoreLogic reports that there has not been a significant change in the property market in May 2022.
Since March 2022, we have seen slow population growth in the entire country. Also, both the rates of immigration and emigration fell, meaning that the population has been somewhat stable in the past few months. The slow population growth means that the demand for houses is low.
With the low housing demand in the main cities of Australia in 2023, spending money on constructing new houses should be treated with caution although some great deals are still there to be made. If you’re feeling lucky, you can try buying home tickets to win a house!
Australia’s property market trends may change further in 2023 and there is a need for investors to come up with better housing designs to draw the attention of the new generation of home seekers available in the country.