Australia Property Market Price Changes and Trends

The Australian property market has experienced a significant downturn over the past few months, with prices across most Australian cities falling. However, Australian cities have also been featured in both the top and bottom of global rankings for price changes. In this article, we will explore the latest trends in the Australia property market and how it compares to other global cities.

Price Declines in Australian Cities

House prices in Sydney, which were shockingly high in the past, are now experiencing one of the largest declines across the country. Melbourne has also seen dips in prices, but other cities like South East Queensland, Adelaide, and Perth are holding their value, if not experiencing continued price growth.

The Australian property market witnessed incredible levels of growth since the pandemic began, with houses available for sale at record lows and rental stock dwindling. However, the recent downturn has led to a decline in prices in several cities.

According to Knight Frank’s Global Residential Cities Index Q3 2022, the top ten price declines occurred across various countries, including New Zealand, China, Australia, Europe, and South America. In this list, Sydney, Darwin, and Melbourne were among the cities with significant price declines.

Here is the list of the top ten cities with price declines:

1. Wellington, New Zealand – Down 17.3%
2. Auckland, New Zealand – Down 11.2%
3. Buenos Aires, Argentina – Down 9.8%
4. Hong Kong – Down 7.1%
5. Wuhan, China – Down 6.1%
6. Tianjin, China – Down 4.4%
7. Zhengzhou, China – Down 3.9%
8. Sydney, Australia – Down 3.6%
9. Darwin, Australia – Down 3.1%
10. Aberdeen, United Kingdom – Down 2.4%

Residential Price Increase in Australian Cities

While some Australian cities experienced price declines, others saw residential price increases. Adelaide, in particular, ranked among the top ten cities globally for residential price increase. The Australian property markets were represented across the 150 city list in the report.

Here are the rankings for Australian cities with residential price increases:

1. Adelaide – Eighth place with a house price rise of 21.3%
2. Brisbane – Thirtieth place with an increase of 12.9%
3. Hobart – Fifty-ninth place with a house price increase of 7.9%
4. Perth – Seventy-seventh place with a price increase of 6.3%
5. Canberra – One hundred fourth place with a price increase of 4%

Global House Price Rises

While the Australian property market experienced price declines in some cities, other global cities witnessed significant price surges. The top three cities with shocking price surges of over 100% were all in Turkey. The remaining cities on the list were scattered across various regions, including Florida, South Australia, the Middle East, northeastern Europe, and Iceland.

Here is the list of the top ten cities with house price rises:

1. Istanbul, Turkey – Up 212.1%
2. Ankara, Turkey – Up 196%
3. Izmir, Turkey – Up 185.8%
4. Miami, United States – Up 28.6%
5. Riyadh, Saudi Arabia – Up 25%
6. Vilnius, Lithuania – Up 25%
7. Tallinn, Estonia – Up 23%
8. Adelaide, Australia – Up 21.3%
9. Skopje, North Macedonia – Up 21.2%
10. Reykjavik, Iceland – Up 20.7%

Comparison with Global Hubs

How did global hubs like New York and London fare in comparison to the Australian property market? The rankings for these cities varied, with some experiencing price increases and others witnessing declines.

Here are the rankings for selected global cities:

1. Kuala Lumpur, Malaysia – 138th place with a price decline of 1.2%
2. Jakarta, Indonesia – 121st place with a price rise of 1.7%
3. Seoul, South Korea – 118th place with a price rise of 2.3%
4. Paris, France – 117th place with a price rise of 2.4%
5. Shanghai, China – 106th place with a price rise of 3.8%
6. Vancouver, Canada – 105th place with a price rise of 3.9%
7. Canberra, Australia – 104th place with a price increase of 4%
8. Toronto, Canada – 101st place with a price rise of 4.5%
9. Taipei, Taiwan – 91st place with a price rise of 5.6%
10. Abu Dhabi, United Arab Emirates – 87th place with a price rise of 5.8%
11. Dubai, United Arab Emirates – 27th place with a price rise of 13.2%
12. Frankfurt, Germany – 75th place with a price rise of 6.5%
13. London, United Kingdom – 70th place with a price rise of 6.8%
14. Delhi, India – 61st place with a price rise of 7.8%
15. Osaka, Japan – 60th place with a price rise of 7.9%
16. New York, United States – 32nd place with a price rise of 12.4%
17. Brisbane, Australia – 30th place with a price rise of 12.9%
18. Los Angeles, United States – 33rd place with a price rise of 11.3%
19. San Diego, United States – 31st place with a price rise of 10.9%
20. Singapore – 26th place with a price rise of 13.6%

Resilience of Urban House Prices

The report also noted that urban house prices have been more resilient than national markets in the third quarter. While the number of cities recording annual price growth declined slightly from the previous quarter, the overall trends suggest that interest rates, inflation, and other factors have made an impact on housing markets worldwide.

Australia Property Market Overview

The national weekly asking property price in Australia is currently almost $830,000, a significant increase compared to the pre-Covid average of around $580,000. The capital city average is even higher, standing at over $1.2 million. The major cities of Sydney and Melbourne have been the primary drivers of these high prices, while other cities like Brisbane and Adelaide have also seen notable increases.

It is important to note that the property market in different Australian cities varies significantly. While Sydney and Melbourne boast some of the most expensive homes in the country, cities like Adelaide, Perth, and Brisbane offer more affordable options.

In conclusion, the Australia property market has experienced both price declines and increases in various cities. While some cities have seen significant declines, others have enjoyed price growth. The global house price rankings also highlight the diversity of trends across different cities worldwide. It will be interesting to see how the Australia property market evolves in the coming months and how it compares to other global markets.

Source: https://downunderrealty.com