RESIDENTIAL PROPERTY
RESIDENTIAL property prices are forecast to fall between 7% and 10% this year, as further hikes to the cash rate leave borrowing power diminished.
Sydney, Brisbane and Canberra are expected to see the greatest declines in property prices over 2023, with falls set to be between 8% and 11%.
While both Melbourne and Hobart are forecasted to see falls in line with the national average, between 7% and 10%.
Adelaide, Darwin and Perth are expected to remain the most resilient, with respective falls between 3% to 6%, 3% to 6% and 5% to 8%.
“At the beginning of May 2022, official interest rates were sitting at 0.1%. By the end of 2022, the cash rate had increased to...
Cameron Kushner Report author and director of economic research at PropTrack.
“While we don’t expect interest rates to rise as fast and high as they did in 2022, we are expecting some additional increases early on in 2023.”
“We expect two 25 basis point cash rate hikes from the Reserve Bank of Australia, one to be delivered today...
“With borrowing costs continuing to rise and the subsequent reduction in borrowing capacities, property price falls are...
Kushner added that falls to prices wouldn’t be restricted to the capitals, with demand likely to dip for regional locations...
“After exceptional price growth throughout the pandemic, last year’s changing market conditions saw prices fall...
The report also found that preliminary sales volumes in 2022 were 16.5% lower than 2021 levels, though 16.9% higher than 2019.
With the volume of new stock coming to market slowing since its peak in March 2022, down 24.8% on December 2021 levels...