Where in Australia is property price growth still slow?

Where in Australia is property price growth still slow?

  22 Dec 2023

The Australian property markets are continuing to defy all those who predicted a downturn this year with an eleventh straight month of price increase in November, reaching a new record high.

However, according to PropTrack, some markets are seeing growth slow as more sellers take their properties to market.

The latest PropTrack data shows prices have grown every month this year, remaining resilient in the face of higher interest rates and poor consumer sentiment.

However, the pace of growth has slowed in recent months with the increase in properties coming to market offering buyers more choice.

Ms Eleanor Creagh, Senior Economist at PropTrack explained:

“After falling through the second half of 2022, national home prices have since fully recovered these losses to sit 1.29% above their previous peak and 5.42% above levels a year ago.

This year’s spring selling season has been stronger than last year’s so far, particularly in Sydney and Melbourne.

That reflects improved selling conditions, more certainty about interest rates, and the fact that prices are growing across much of the country this year, compared to declines last year.

These factors have supported vendor confidence.

As a result, choice has improved significantly in the major capitals which has seen the pace of growth slowing.

But although the flow of new listings hitting the market has risen, demand for housing has remained strong and home prices have continued to move higher, albeit at a slower pace.”

Where price growth is slowing

According to Ms Creagh, in the capital city markets that led the home price recovery, or defied price falls entirely, price growth has slowed as the spring selling season has unfolded.

PropTrack’s data show that compared to 3-months ago quarterly growth in Sydney, Brisbane, Perth, and Adelaide has slowed, although these markets remain the top performing over the past year and continue to record strong growth despite slowing.

Regions Where House Price Growth Is Slowing Fastest

Ms Creagh further explained:

“The regions where growth is slowing fastest are regions that experienced an exceptionally strong pace of growth through the winter months of this year.

For example, the Adelaide Central and Hills region saw house prices lifting 4.56% in the quarter ending August 2023, an annualised pace of close to 20% – well above the long run average annual pace of growth.”

Meanwhile, looking at unit price growth the trend is similar, with regions that experienced an exceptionally strong pace of growth earlier this year slowing fastest.

PropTrack figures show that unit prices in the Sunshine Coast lifted 4.82% in the quarter ending August 2023, an annualised pace of more than 20%.

Regions Where Unit Price Growth Is Slowing Fastest

Ms Creagh said that the curtailing of the pace of growth from the exceptional pace experienced in some regions earlier in the recovery is natural given the rapid turnaround in prices earlier this year, a higher volume of listings hitting the market relative to the winter months and affordability constraints in play.

It’s also an interesting picture when looking at where price growth has slowed the fastest compared to 6 months ago.

Regions Where House Price Growth Has Slowed Fastest In The Past 6 Months

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