Even though the year began at the peak of the downturn, the market has made a robust recovery over the last 12 months, with all capitals combined dwelling values gaining an average of 7.7% – according to SQM Research.
The same research shows all-capitals average combined-dwellings rents increased by 14.3% in the same period, raising the median rent for houses to $802 and units to $594.
But it looks like the high-growth period might be slowing, with SQM’s 2024 Boom and Bust Report released end of November predicting a mixed 2024 market, with Sydney and Melbourne tipped for a slight correction.
The year caps off with a final RBA rate hike last month of 0.25%. According to Canstar, this adds about $84 per month to an average $500K home loan, for a total extra of $1,301 since the hikes began.
November has also observed a landmark High Court judgement in the NT, making landlords responsible for unsafe and unhealthy housing, setting a precedent for the rest of the country and sparking class action in NT and WA.
The news comes in at the same time as CBA’s announcement to reduce the deposit required for property investment loans, down to 5%, which may help to counter the dwindling investor activity reported by PIPA’s 2023 survey.
Download and read the full Market Essentials – December 2023 Report.