MARKETS EDITORIAL DESK, THU 14 DEC 23
The pressure of climbing interest rates, stretched affordability and the “fixed rate cliff” stress-tested the housing market through 2023, however, resilience largely prevailed.
“Housing activity rebounded through early 2023 as buyers took advantage of lower prices, however towards the end of 2023 affordability constraints have become more pressing, skewing demand towards the middle-to-lower end of the pricing spectrum,” Owen said.
“Certainly, lower-priced housing markets such as Perth, Brisbane and Adelaide experienced very resilient conditions through the national downswing period and strong annual growth through to the end of November.”
Best and worst for value growth
Across the capital city markets, Perth claimed eight of the top 10 spots for strongest growth in house values, with Brookdale, Armadale and Hilbert all up more than 30 per cent annually.
The weakest capital city house suburbs featured Hobart’s upper end, with North Hobart and Taroona down 13.9 per cent and 13.8 per cent respectively, while the top 10 worst performing unit markets were more diverse, spanning Hobart, Darwin, Melbourne and Canberra.
Rochester (Vic) was the worst-performing house market, with values down 26.0 per cent, while Mudgee (NSW) units recorded value falls of 11.4 per cent during the past year.
Best performing rental markets
This year was marked by staggering levels of net overseas migration, largely influenced by the disruption that Covid-related border closures had on migration patterns.
Owen said that although this likely added some upwards pressure to home values, the most obvious response in housing metrics was in the rental market.
“Since the re-opening of international borders, strong rent growth was exhibited in markets with historically high exposure to overseas migration, and this is also reflected in the Best of the Best results for 2023,” she said
https://www.theurbandeveloper.com/articles/corelogic-best-of-best-2023