In this edition
Where will Australian property be in 10 years?
Construction cost growth heading back to trend
Beachside suburbs and capital growth
Proptrack Home Price Index results - January 2024
Where will we be in 10 years?
Recent data from CoreLogic shows a significant 67.5% increase in Australian dwelling values over the past decade, with a notable 8.1% rise last year. This growth varies across cities, with Perth leading. Factors like supply, demand, and affordability play crucial roles in these trends.
Australia's median dwelling value is approximately $758,000, with predictions suggesting a potential rise to $1.26 million by 2033. Take a look at Michael Matusik's latest missive which delves into these dynamics and their implications for the future of the Australian real estate market.
Construction cost growth heading back to trend
The Covid Homebuilder Grant saw construction costs escalate sharply for a while during 2021/22, but costs growth was only ever going to be short-lived.
The latest CoreLogic report reveals a modest 0.8% increase in national construction costs for the recent quarter, signaling a return to normal trends. The annual growth rate for 2023 stands at 2.9%, the lowest since 2007, indicating a stabilization in the market post-pandemic.
Beachside suburbs and capital growth
Perth... wins again.
Despite challenges like rising interest rates and cost of living pressures, over a third of Australia's regional coastal markets achieved record-high housing values by the end of last year, according to CoreLogic's comprehensive analysis.
Examining 368 coastal suburbs at least 50km from capital city CBDs, the study found notable variations in property performances, with Western Australia's beachside suburbs, particularly in outer metro Perth, leading in value gains for 2023. Western Australia also claimed the majority of the top coastal suburbs for annual capital gains.
PropTrack Home Price Index results - January 2024
Perth is the market to be buying in right now.
It has a median house price of $100k below the national average, over $200k below the capital city average, and it has by far the highest growth. Not a surprise given how affordable it is compared to the rest of the capitals.