The property market bounced back in the first half of 2023, even as interest rates continued to rise.
A deep dive into market activity over the past six months shows owner-occupiers are seeking affordability in city suburbs, while investors are chasing returns in our smaller capitals.
Amid the turnaround in the property market, PropTrack data shows suburbs in Sydney and Adelaide have been particular standouts, with Perth and Queensland as a whole boasting some of the fastest selling suburbs in the country.
While house buyers may have been shifting to regional lifestyle locations during Covid, they’re now chasing value for money in urban centres, while investors are circling more affordable suburbs on the fringes of Adelaide and Perth where they can still get a good rental return.
PropTrack senior economist Paul Ryan said the property market this year has been “remarkable”.
“After a fall in national prices of 2.4% during the second half of last year following the sharpest interest rate rises on record, we’ve seen quite a staggering reversal in property prices, which are up 2.3% this year so far nationally.”
Buyers are feeling comforted by greater certainty around economic activity, continued low unemployment and talk of interest rates nearing the peak, Mr Ryan said.
With the number of active buyers larger than pre-Covid, and price growth likely to encourage more people to list, the signs are pointing to a strong selling season ahead, he added.
“Momentum is very strong, clearance rates are very high, price growth over the past couple of months has been very strong, particularly in Sydney, and that points to continued price growth going into spring.”
Source: Mid-year property report card, Caroline Riches for Realestate.com.au