Australia’s Housing Market: At a critical juncture in its development, the housing market in Australia is contending with the diminishing factors that contributed to unprecedented increases in prices last year. In 2024, Oxford Economics projects that the nationwide increase in property prices will decelerate to 2.7%, in stark contrast to the 8.1% increase observed in 2023, as reported by CoreLogic Inc.
Hyderabad real estate market sees 172% growth in 5 years
Strengthening of the Real Estate Market
Notwithstanding the substantial 4.25 percentage point tightening of monetary policy by the Reserve Bank of Australia since May 2022, the property market exhibited exceptional resilience and experienced a recovery in the previous year. A dearth of newly built housing and a surge in population growth supported this recovery. Recent developments, including rate increases, escalating living expenses, affordability crises, stockpiling, and a decline in consumer sentiment, have impeded the ascent of housing prices.
The Importance of Affordable Housing
Senior Economist Maree Kilroy of Oxford Economics notes that a critical factor in containing price growth, specifically for houses, will be the deterioration of housing affordability. However, it is anticipated that a significant scarcity of housing, which is projected to surpass 100,000 in 2023 and slightly increase to approximately 97,000 this year, will likely provide some price support.
Real Estate and Global Economic Perspectives
As Australia navigates the complexities of its housing market, significant economic and real estate developments are taking place on an international scale. Canadian retail sales, Blackstone’s purchase of Tricon Residential, Wayfair’s layoffs of Canadian employees, and interest rates set by the Bank of Canada are just a few of the many factors that affect the intricate web of global finance and real estate dynamics.
Average housing prices up by 5 pc in 8 cities between Jan Sep this year: Report
