Property Weekly Pulse with Rasti:
Week Ending 22nd Dec ’23
Hello, property enthusiasts!
In our final weekly update of 2023, we’re spotlighting the stars of the Australian property market! From Western Australia’s dominance to the resilience of nationwide markets, join us as we explore the top-performing suburbs, discuss the challenges and opportunities within the construction sector, and offer insights to help you plan for a prosperous 2024.
2023 has been a standout year for Western Australia in the real estate sector. Dominating the scene, nine out of the top ten performing suburbs belong to this vibrant region. A shining example is Armadale in Perth, which saw an extraordinary 34% growth in median house prices, now standing at $404,000. This growth underscores the region’s affordability and allure, proving it to be a magnet for both keen investors and eager homebuyers.
Yet, Western Australia isn’t alone in this remarkable journey. Elizabeth North in South Australia made a notable entrance with a 30% growth, marking its position as the eighth in the top ten. Alongside, Brisbane, Sydney, and Melbourne have also witnessed robust performances. Each percentage point and dollar sign here represents stories of communities transforming and dreams taking shape.
Where Investments Made Their Mark
In 2023, the Australian housing market witnessed significant financial flows. Some standout
figures include:
● $1.461 billion in sales in Mosman, NSW.
● Brighton in Victoria, with house sales amounting to $893 million.
● Hope Island’s notable $624 million in house sales in Queensland.
These numbers paint a picture of a vigorous and opportunity-rich Australian housing market.
Australia’s Standing on the Global Real Estate Stage
Globally, Australia has secured the 18th position in property price growth. With a 4.9% increase in house prices over the year, as per the Knight Frank report, Australia has demonstrated formidable resilience despite the challenges of rising interest rates and a turbulent global economy. Limited stock, strong employment, and healthy wage growth have been pivotal in driving this stability.
Navigating the Labour Challenges in Construction
The construction sector, a critical real estate component, has not been without its challenges. A significant labour shortage, exacerbated by competing infrastructure projects, has led to a 27% rise in building costs. This shortage is a hurdle but also an opportunity for innovation and strategic planning within the industry.
The Ebb and Flow of the Auction Market
As the festive season approaches, the auction market has a noticeable slowdown. A 4.1% drop in listings has been observed, according to CoreLogic. However, this slowdown presents a silver lining for prospective buyers, offering more choices and less competition.
Key Highlights:
● Western Australia’s dominance with nine top suburbs.
● 34% growth in Perth’s Armadale.
● $1.461 billion in sales in Mosman, NSW.
● 18th global rank for Australia in property price growth.
● 27% rise in construction costs.
As we navigate these evolving times in the property market, it’s crucial to remember that each data point is part of a larger human story. It’s about real people, real aspirations, and tangible investments.
Remember, understanding the nuances of the market is essential for informed decision-making. Let’s embark on this property journey together!
The Real Estate market typically snoozes over the next few weeks. Nonetheless, this break should give you time to plan and work out your 2024 goals and beyond, so make sure you make the most of it. I wish you a Merry Christmas and a prosperous New Year.
Rasti Vaibhav, The Architect of Property Wealth
Navigating the property market’s complexities can be daunting, but fear not – I’m here to guide you. Keen on understanding how these developments impact your property journey? Book a one-on-one consultation with me at https://getrare.com.au/ready or join our educational workshops to gain deeper insights at https://getrare.com.au/workshop. Let’s unlock the potential of your property aspirations together!