Capital City Market Report – APM

Australian Property Monitors have released their Capital City Market Report this month, the report is a snapshot of overall performance of the Australian property market in comparison to previous year’s performance and activity. This insight is invaluable information for all wanting to keep informed about market trends.

National Market Overview

Over 2013, the Australian capital city housing market recorded its best year for prices growth since 2009. The national median house price increased by up to 9 percent compared to 10 percent in 2009. Contributions to the solid rise in the national house price were mixed. Sydney was the outstanding performer, with local prices increasing by up to 13 percent over the year. Melbourne and Perth recorded solid prices growth of up to 8 percent, however prices growth in Brisbane, Adelaide and Canberra was subdued by comparison.

Buyer demand was also mixed within capital city markets, with activity levels varying between buyer types, regions and price ranges. Low and falling interest rates were the underlying catalyst for the overall improvement in housing market activity throughout 2013. The lowest headline rate in 60 years significantly improved affordability for home buyers, however local factors dictated the level of prices growth – in particular the performance of local economies. The national housing market will record positive growth again in 2014, although the level of growth will likely be half that recorded in 2013. Local economic conditions will continue to be a key driver of prices growth, with those export-focused resource economies likely to perform best within a lower and falling dollar environment. However, rising unemployment and falling living standards will impact other local housing markets, particularly in Sydney and Melbourne.

Source: Dr. Andrew Wilson, Senior Economist Australian Property Monitors Housing Market Report Jan14

Follow: Subscribe to this post's comments