Australia’s Property Market Hits New Highs

Welcome to this week’s edition of Property Edge, where we bring you the latest and most significant updates from the world of real estate. Whether you’re a seasoned investor, a budding property student, or just keen on staying informed, our roundup is designed to give you a comprehensive overview of the week’s key property insights. Let’s dive into the top stories that are shaping the property landscape this week.

Australia’s Property Market Hits New Highs

In a surprise turnaround from the 2022 downturn, Australia’s property market has hit a new milestone with the national median house price now nearing 1.1 M. The latest report from Domain highlights a marked recovery, especially in cities like Sydney, Brisbane, Adelaide, and Perth, which are now experiencing historic price peaks.

Sydney and Brisbane both bounced back quickly after their brief downturn, while Adelaide and Perth avoided the slump altogether, continuing to set new price records. Despite rising interest rates, the market saw a surge due to limited property listings and strong buyer competition, leading to a substantial increase in house prices across most capitals, except for slight dips in Canberra and Darwin.

Domain notes that the market’s recovery pace has started to stabilise, with more listings emerging and auction numbers growing. This has somewhat eased the pressure on buyers, offering them more choices. Sydney’s median house price is now touching the 1.6 million mark, and unit prices have now made a full recovery from the downturn.

The latest Domain report also highlights significant growth in Brisbane’s market, emerging from a steep decline to breaking records in house and unit prices. Experts attribute this growth to a combination of supply shortage, affordability, and demographic trends in anticipation of the upcoming Olympics.

In Perth and Adelaide, the housing markets continue to thrive, setting continuous price records. Domain predicts further price increases in these cities due to strong demographic support, particularly in Perth, which led in house price growth in the December quarter.

Canberra’s market, however, has been more volatile, with house prices falling but unit prices reaching new peaks. Melbourne’s recovery has been slower, with modest growth in both house and unit prices.

Overall, Domain forecasts a gradual easing in property market growth for the coming year, with dynamics likely to shift in late 2024 as interest rates change.

Looking for a “go to” suburb to focus on in your property searching? Consider going West!

Churchlands, Perth: Australia’s High-Performing Property Suburb

While places like Noosa, Byron Bay, and Sydney’s eastern suburbs have traditionally grabbed the spotlight for their property market performance, a new star has emerged: Churchlands in Perth. According to Domain’s latest data, this suburb experienced a staggering 49.8% increase in house prices last year, making it the top-performing postcode in Australia with a median price of 1.535 million.

The Domain report also sheds light on the trend of rising property prices in country and regional towns, suggesting a shift due to affordability pressures in major cities. Other notable suburbs include Marsfield in Sydney and Warana on the Sunshine Coast, both showing significant growth.

Local real estate agents highlight Churchlands as a “hidden gem,” offering options for younger people struggling in the rental market. Located near Perth’s CBD and popular beaches, Churchlands attracts young professionals and families with its amenities, school catchment zones, and easy access to the city and beaches.

Interestingly, Churchlands’ growth is partly due to the ripple effect from nearby premium suburbs. Its previously undervalued status and convenience have now made it a prime choice for buyers. The area’s mix of old and new properties and reputation for safety and lifestyle options make it particularly attractive to a diverse range of buyers, including first-home buyers and young professionals.

And if you’re searching for a property sweet spot balancing proximity to the CBD and affordability, let’s do a quick national fly-around:

Discovering Australia’s Most Affordable Suburbs Near CBDs

Despite the overall recovery and price surge in Australia’s property market, there are still pockets of affordability, particularly in suburbs close to CBDs of major cities and regional towns, with prices starting as low as 190,000. The latest Domain House Price Report highlights these areas, offering potential opportunities for budget-conscious buyers.

In Sydney, suburbs like Kingswood, Lakemba, and Wiley Park offer units at median prices ranging from 370,043 to 400,000. These suburbs, although a bit further from the CBD, provide great value due to their amenities and potential for growth.

Melbourne presents affordable options like Albion and Carlton, with median unit prices at 270,000 and 345,000, respectively. Carlton’s proximity to the CBD makes it a particularly attractive option for those seeking urban living at a lower cost.

In Perth, suburbs like Osborne Park, Glendalough, West Perth, and Maylands offer median unit prices from 266,500 to 270K. Their closeness to the city center and affordable pricing make them ideal for buyers looking for value in a prime location.

Brisbane features affordable suburbs like Beenleigh, Kippa-Ring, and Fortitude Valley, with unit prices ranging from 315,000 to 430,000. Fortitude Valley, in particular, stands out due to its proximity to the CBD and the lifestyle it offers.

Townsville in northern Queensland showcases suburbs like Hermit Park, Rosslea, and West End, where median unit prices are well below the 300K mark, offering attractive entry points into the property market.

In Cairns, suburbs like Woree and Manunda provide some of the most affordable unit options, with prices starting at 190,000. These areas are appealing for investment opportunities due to their low prices and high rental demand.

Lastly, in Adelaide, suburbs like Salisbury and Plympton offer median unit prices around 350,000, combining affordability with proximity to the city.

These affordable suburbs, while offering lower entry prices, have also shown potential for capital growth, making them appealing choices for first-time buyers and investors alike.

Meanwhile, the top end of the market may suffer as demand is set to ease …

Australia Ends ‘Golden Visa’ Program Affecting High-End Property Market

Australia’s recent decision to discontinue the Business Innovation and Investment Program (BIIP), popularly known as the ‘golden visa’ program, is expected to impact its luxury real estate market. This program, introduced in 2012, was particularly favored by wealthy mainland Chinese and Hong Kong property buyers for gaining residency in Australia.

The BIIP played a significant role in channeling high-net-worth individuals into Australia’s exclusive property markets, where homes can cost between AUS 5 million and AUS 40 million. Over 100,000 overseas migrants, predominantly Chinese nationals, have used the BIIP for residency since its inception. In the 2022-2023 financial year, over half of the BIIP visa places were taken by Chinese nationals.

The program’s termination is part of a broader strategy by Canberra to reform the country’s migration system, focusing on addressing a shortage of skilled workers. The revamped system prioritises skilled migrants and allows more flexibility in employment changes while retaining residency.

While there’s speculation about the impact this move will have on the high-end property sector, analysts like Daniel Ho of Juwai IQI and Sydney-based luxury property agent Ken Jacobs suggest that the overall effect might be limited. They believe that wealthy Chinese buyers, who account for a small percentage of all Chinese property investors in Australia, will likely find alternative ways to obtain residency. The focus is now on how this policy change will reshape investment patterns and property ownership dynamics in Australia’s high-end real estate market.

And that wraps up our roundup for this week. By keeping you informed with these crucial insights, we aim to empower your property journey and decision-making. Remember, staying updated with the latest news is key to navigating the ever-evolving property market. We hope this newsletter serves as your go-to summary, saving you time while keeping you informed. Looking forward to bringing you more updates next week. Until then, happy property exploring!

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