Medians Have Bounced Back
Price growth in 2023 means Australia has fully recouped any losses from 2022, according to a new report by property analyst Oxford Economics Australia.
It says the national median house price hit a record $939,000 in December 2023.
Report author Maree Kilroy says total listings for sale are finally starting to lift in Melbourne and Sydney, a trend she expects to continue in the coming quarters. But she says low levels of listings will continue in Perth, Brisbane, and Adelaide, leading to further price growth in those cities.
Kilroy believes predicted interest rate cuts in late 2024, will accelerate broad price growth again and that the pace of unit price growth will be faster than house price growth in the two years to FY2026 as buyers seek out more affordable options.
While gross rental yields have lifted as well as loans to investors, Kilroy says with many state governments increasing charges on residential property investors and targeting the short-stay letting market, she believes the chances of rental supply increasing significantly are low.
