Property search activity is rising despite high borrowing rates and home prices, with several suburbs seeing significant jumps in search volumes, reflecting increased buyer interest over the past year, PropTrack reported.
Data from PropTrack’s September home price index revealed that national home prices have grown for 21 consecutive months, reaching a new peak.
Home prices have increased by 5.7% over the last 12 months, even as borrowing conditions remain tight.
Despite the highest interest rates in 12 years, population growth, low rental availability, and accumulated home equity have sustained buyer interest.
The national rental vacancy rate has held at just 1.3%, while rent prices continue to rise. As competition for rentals tightens, some renters are now leaning towards buying.
“More people may be considering homeownership over renting,” said Megan Lieu (pictured above), economic analyst at REA Group.
Realestate.com.au reported that overall “buy” searches are 7% higher than they were in September 2023. However, certain suburbs have experienced a much sharper rise, reflecting a heightened interest in those areas.
In Sydney, Tallawong saw a 63% jump in search volume, followed by Blaxlands Ridge at 42%, and Kurraba Point with 40%. Experts attributed the spike in Tallawong’s popularity to the newly opened metro line in the area.
The Melbourne suburbs of Koo Wee Rup, Dallas, and Lang Lang East recorded significant search increases, with growth of 112%, 48%, and 44%, respectively, compared to September 2023.
Beaudesert led Brisbane’s property search growth with an 87% increase, while Boonah and Woodford both saw a rise of 73%.
Adelaide’s Gawler Belt, Roseworthy, and Gawler recorded increases of between 67% and 70%. In Perth, the most-searched suburbs included Upper Swan (54%), Wooroloo (50%), and Bullsbrook (37%).
Analysts expect high demand for property to persist as the population expands and rental availability stays limited.
A potential reduction in interest rates next year is also forecasted to improve borrowing capacity and housing affordability, likely fueling more property searches.
“These market conditions could lead to an even greater increase in search activity from prospective buyers,” Lieu said.
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