Property Market Update – December 2022. The property market has witnessed a number of big changes in the last 12 months. This has occurred for a number of reasons, but let’s take a look at the numbers. According to CoreLogic, in the year ending November 2021, median property prices on a national basis increased by 22.2%. In the year ending November 2022, prices fell 3.2%. With unprecedented increases in interest rates, this is a relatively interesting statistic. It would be viewed as a nominal drop, not a significant disaster as some are reading. Every capital city in Australia recorded price drops over the last 3 months. This is no surprise. Some capital cities recorded increasing prices. The following generated capital growth in the last 12 months ending November 2022.
- Adelaide +13.4%
- Brisbane +3.3%
- Darwin +5.5%
- Perth +3.9%
However, some capital cities recorded decreasing prices. The following generated capital declines in the last 12 months ending November 2022.
- Canberra -1.3%
- Hobart -4.1%
- Melbourne -7.0%
- Sydney -10.6%
What will happen next?
According to SQM Research, its anticipated property prices will see a return to some capital growth in 2023.
Property price forecast?
SQM Research is an investment research house who specialise in providing accurate research and data to financial institutions, investment professionals and investors. SQM Research have presented their estimated property price forecast for each capital city. They substantiate these estimates using a base case scenario where the take different case scenarios on inflation, interest rates and unemployment.
- Adelaide 0% to +5%
- Brisbane +1% to +5%
- Canberra -3% to +2%
- Darwin -5% to 0%
- Hobart -1% to +3%
- Perth +4% to +8%
- Melbourne +1% to +5%
- Sydney +5% to +9%
What to do next?
In the year 2023, sensible and strategic planning will see you find some great investment value in the property market. Seeking professional advice is the key to your success. If you have developed adequate equity, this may be an incredible opportunity to enhance your wealth and take the next step to reach a successful retirement.
If you’d like to learn more about buying an investment property, please don’t hesitate to contact us.
We would welcome the opportunity to help with your property purchase. Our YouTube channel and Market Insights also provide a wealth of information to assist you with many areas relating to the property.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
December 2022
