Based on the latest residential data and insights relating to demand and median price, the 2018 Australian Property Market Report has been released and we are expected to see a slow-down of the real estate market, as demand moderates and housing prices fall nationwide.
Whilst conditions vary from state-to-state, banks continue to cut mortgage rates and the days of low-interest rates will soon be over the report says, with restrictions on lending expected.
Demand for property in Australia has risen 5.1% year on year, with the demand for houses coming in at a 6.8% increase from last year. “Across Australia, property prices have increased by 6.3% over the year," says Nerida Conisbee, REA Group Chief Economist. "Over the past quarter, however, there’s been a significant slowdown with prices falling and demand for property continuing to slacken nationwide.”
Sydney and Perth are experiencing the most significant declines in demand but, whilst Perth rallied at 7.0% increase YOY and continues to grow in demand, the draw of Sydney as a city to live in has taken a massive 25.4% dive.
Other capital cities have surged – most significantly, demand for property in Hobart has increased by an amazing 48.1%, netting it more than half of the top 10 most in-demand suburbs to live in.
Canberra is also up significantly, with a rise of 27.6% in demand for housing in the Nation’s Capital – mostly driven by the rise in popularity of apartments. Whilst Melbourne was not the largest city to enjoy increased demand, it saw the north-eastern suburb of Warrandyte listed as the most in-demand suburb in Australia, driven by its big homes and block sizes, as well as relative affordability and commuting distance to Melbourne.
The top 10 most in-demand suburbs in Australia
- Warrandyte, VIC
- Bellerive, TAS
- South Hobart, TAS
- Eltham, VIC
- Battery Point, TAS
- Hobart, TAS
- Middle Park, VIC
- Albert Park, VIC
- West Hobart, TAS
- Eltham North, VIC
In terms of housing prices, Sydney remains far and away the most expensive city in which to purchase a home, with a median price of $800,000 – compared with Hobart at $425,000. Canberra and Hobart saw the strongest price growth over the year.
Median house price nationwide
- Sydney $800,000 -2.4%
- Melbourne $650,000 +8.3%
- Canberra $596,000 +12.5%
- Darwin $479,000 -1.2%
- Brisbane $475,000 0%
- Perth $460,000 -5.7%
- Adelaide $440,000 +3.5%
- Hobart $425,000 +17.7%
Read the full report here.
This article originally appeared on Home Beautiful.