PLEASURE AND PAIN IN AUSTRALIA’S PROPERTY SECTOR

Australian Conveyancer magazine, released today, reveals the pleasure and pain that came in a year of ‘highs’ in the national property industry. 

Magazine link: 

Australian Conveyancer edition four - The year interest rates came knocking by trisearch - Issuu 

The key takeaways in multi-dimensional coverage include: 

• The RBA’s official home loan cash rate of 4.35% - a 12-year high – is having a stablising effect on Australia’s rate of inflation, bringing hope of relief in 2024. 

• A cut in interest rates in 2024 would spark demand and create another home price upswing. 

• An Australian Property Council survey reports high confidence among industry professional. 

• Sydney’s northwestern outskirts are favoured by buyers seeking value, more space, and tranquillity. 

• Perth’s average home price growth was the highest in Australia at 12.7%, ahead of a national average of 5.4%. 

• Sydney’s median house price was $1.36m in 2023 – the highest in the land ahead of a national capital city average of $919k. 

• Renters in our capital cities would be financially better off if they bought the apartment they live in. 

The Australian Conveyancer includes a 2024 outlook by political and business leaders. Some observations: 

Reserve Bank Governor Michele Bullock: 

“Whether further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable time frame will depend upon the data and then evolving assessment of risks,”  

Reserve Bank of Australia: 

“Australian households and businesses are generally well placed to manage the impact of higher interest rates and inflation, supported by continued strength in the labour market and sizeable savings buffers. 

“However, this resilience is unevenly spread. Some households and businesses are already experiencing financial stress, and the squeeze on household budgets is likely to continue to build.” 

Federal Treasurer Jim Chalmers: 

“We are making some welcome progress in the fight against inflation and that will determine the future directory trajectory of interest rates.” 

Australian Property Council Chief Executive Michael Zorbas: 

“Construction activity expectations are generally positive across all asset classes, with the exception of the retail and office sectors, where they slightly dipped into the negative territory. 

“Expectations regarding construction activity in the retirement living sector have hit their highest mark since the December quarter of 2021. 

“Likewise, expectations for residential construction are at their peak in over a year, and industrial construction expectations have reached their highest level since the September quarter of 2022,” he said. 

PropTrack economist Paul Ryan: 

“With how sharply rent costs are going up, a lot of first-time buyers, I think if they can manage it, they would love to jump into home ownership just to avoid the uncertainty of rent costs over the next year or so,” 

Westpac Bank: 

Westpac initially predicted a stable housing market for 2023 but revised its forecast – citing strong population growth – for national house price inflation to 7 per cent for the year 2023. It expects a further 4 per cent price rise in 2024.