Property Market Update March 2024
Positive momentum continues into 2024.
Property Market Update March 2024
Have we reached the top of this interest rate cycle? Many homeowners around Australia are hoping so, after 13 consecutive rate rises in just two years.
The rapid increase in rates was largely driven by stubbornly high inflation, which is now getting closer to the RBA’s target range of 2-3% (4.1% in the December quarter1). All eyes will be on the March quarter inflation numbers, which should provide a good indicator of what the RBA will do next.
So far, the Australian property market has shown incredible resilience to rising interest rates. January marked the 12th consecutive month of gains at a national level, with dwellings rising an average of 8.70% over that period . High migration, surging rents and rapid growth in investor lending all contributed to strong buyer demand.
Interestingly, the gap between capital city house values and unit values is now a record high of 45.2%2. This may present some opportunities for unit buyers, with units tipped to narrow this gap over the next few years. You can read more in this autumn edition of RAMS Talk.
As for 2024, most of the Big 4 banks are tipping modest growth of around 5-6%3 . But as always, interest rates and consumer sentiment will play a significant role in determining house price growth.
Median dwelling (house/unit) prices at 31 January 20242
| City | Median dwelling price (house and units) | Capital growth last 12 months |
|---|---|---|
| Sydney | $1,122,430 | 11.4% |
| Melbourne | $777,250 | 3.9% |
| Brisbane | $796,818 | 14.8% |
| Adelaide | $721,376 | 10.3% |
| Perth | $676,823 | 16.7% |
| Darwin | $501,520 | 0.1% |
| Hobart | $651,807 | -0.4% |
| Canberra | $842,971 | -1.2% |
| Combined capitals | $836,013 | 10.0% |
| Combined regional | $605,085 | 4.9% |
| National | $759,437 | 8.7% |
1 Australian Bureau of Statistics
2 CoreLogic Home Value Index, 31 January 2024
3 news.com.au
