20 Mar
In 2023, Australia’s property market defied expectations with prices rising despite high interest rates. There is a lot of speculation that interest rates have now peaked, and we can expect to see rates decrease later this year – so what does that mean for the market going forward?
The reality is massive rent hikes and soaring construction costs is pushing more buyers towards purchasing established properties. While borrowing capacity has been impacted and the cost of living is continuing to squeeze household budgets, we haven’t really seen much evidence of the ‘mortgage cliff’ that was predicted.
As it stands right now, stock remains low in both the sales and rental markets, but there are still plenty of buyers competing for property, so a drop in property prices or rents anytime soon is unlikely.
REIA recently published the Real Estate Market Facts report for the December quarter. Some highlights from that report include:
- The national median price for houses increased to $1,005,242, and increase of 1.8% over the quarter and 5.3% over the year
- Rents for 3-bedroom dwellings recorded a quarterly increase of 2.6% and an increase of 13.4% in the past year
- Rents for 2-bedroom dwellings increased over the quarter by 0.4% and annually by 16.1%
- Vacancy rates in the December quarter decreased in Sydney and Adelaide, but remained stable in other capital cities
- Rental yields ranged from -6.7% to 8.5% over the quarter, depending on accommodation type and market.
The current high-stress environment we are operating in is one that as leaders, we can proactively take the initiative on to support both our clients and our teams.
I recently interviewed Megumi Miki on the Future Fit Leadership podcast about the power of quiet leadership and its ability to create a more vibrant, diverse and impactful organisational culture that thrives in authenticity. It’s well worth a listen and you can access it here.
Until next time.
Stay connected,
Sadhana Smiles
CEO, Real Estate Industry Partners
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