A Look at the Australian Property Market in 2013

December 24th, 2013

There were many things that happened and didn’t happen in the Australian property market this year, according to Terry Ryder for Property Observer.

What never happened

  • Housing bubble
  • White-hot property market
  • Inability to afford property
  • Housing supply shortage
  • Market peak

What actually happened

  • Sydney’s price growth was at its strongest in 10 years.
  • Perth’s price growth was at its strongest since 2007.
  • Melbourne’s annual price growth was 6-7%.
  • Darwin led the market at the start of 2013 but its numbers declined.
  • Brisbane’s annual price growth was 3-4%.
  • Annual price growth for Adelaide, Canberra and Hobart was 1%.
  • The average annual price growth was 6-7%, mostly produced by only three cities.
  • Regional areas, like Port Lincoln SA, Narrabri NSW and Miles QLD, produced an average price growth of over 15%.

What we learnt in 2013

  • The Australian property market isn’t a single entity but thousands of local markets.
  • High-population growth areas are damaged by an oversupply of new dwellings.
  • Developers don’t care about oversupply in major cities if they can sell property in China.
  • A bad place to get real estate information is from metropolitan newspapers.

What to expect in 2014

  • More evenly distributed house price growth.
  • Brisbane will become the new market leader.
  • Sydney and Melbourne numbers will slightly decline but still remain strong.
  • Adelaide’s price growth will be at its strongest since 2010.
  • Canberra will struggle due to an oversupply of apartments and public service cuts.